Microsoft acquires Activision Blizzard to bring the joy and community of gaming to everyone, on any device

With three billion people actively playing games today and a new generation steeped in the joy of interactive entertainment, games are now the largest and fastest growing form of entertainment. Today, Microsoft Corp. announced plans to acquire Activision Blizzard Inc, a leader in game development and publisher of interactive entertainment content. This acquisition will accelerate the growth of Microsoft’s games business across mobile, PC, console and cloud and provide building blocks for the Metaverse.

Upon completion of the transaction, Microsoft will be the third largest gaming company in the world by revenue, behind Tencent and Sony. The proposed acquisition includes iconic franchises from Activision, Blizzard and King studios such as “Warcraft,” “Diablo,” “Overwatch,” “Call of Duty” and “Candy Crush,” as well as global eSports operations through Major League Gaming. The company has studios around the world and employs nearly 10,000 people.

“Gaming is the most dynamic and exciting category of entertainment across all platforms today and will play a key role in the evolution of metaverse platforms,” said Satya Nadella, chairman and CEO of Microsoft. “We’re investing heavily in world-class content, community and the cloud to usher in a new era of gaming that puts players and developers at the center and makes gaming safe, inclusive and accessible for all.”

Welcomes Activision Blizzard’s incredible teams and legendary brands to Microsoft Gaming!

The creators of Call of Duty, Warcraft, Candy Crush, Tony Hawk, Diablo, Overwatch, Spyro, Hearthstone, Guitar Hero, Crash Bandicoot, StarCraft and others join Team Xbox.

Creators of Call of Duty, Warcraft, Candy Crush, Tony Hawk, Diablo, Overwatch, Spyro, Hearthstone, Guitar Hero, Crash Bandicoot, StarCraft and more join Team Xbox
As a team, we’ve made it our mission to extend the joy and community of gaming to everyone on the planet. We all know that games are the most vibrant and dynamic form of entertainment in the world, and we’ve experienced the power of social connection and friendship made possible through games.

It’s incredibly exciting to announce that Microsoft has agreed to acquire Activision Blizzard as we pursue this mission.

Over many decades, the studios and teams that make up Activision Blizzard have been a huge source of joy and respect for billions of people around the world. We are incredibly excited for the opportunity to work with the amazing, talented and dedicated employees of Activision Publishing, Blizzard Entertainment, Beenox, Demonware, Digital Legends, High Moon Studios, Infinity Ward, King, Major League Gaming, Radical Entertainment, Raven Software, Sledgehammer Games, Toys for Bob, Treyarch and every other team at Activision Blizzard.

Until this transaction is completed, Activision Blizzard and Microsoft Gaming will continue to operate independently. Once the transaction is complete, the Activision Blizzard business will report to me as CEO of Microsoft Gaming.

Once the transaction closes, we will offer as many Activision Blizzard games as possible on Xbox Game Pass and PC Game Pass, both new titles and games from Activision Blizzard’s incredible catalog. We also announced today that Game Pass now has more than 25 million subscribers. As always, we look forward to adding even more value and more great games to Game Pass.

Activision Blizzard’s amazing franchises will also accelerate our plans for cloud gaming, enabling more people in more places around the world to participate in the Xbox community using phones, tablets, laptops and other devices they already own. Activision Blizzard games are played on a variety of platforms and we plan to continue to support these communities in the future.

As a company, Microsoft is committed to fostering employee and player inclusion in every aspect of gaming. We place a high value on individual studio cultures. We also believe that creative success and autonomy go hand-in-hand with treating every person with dignity and respect. We hold all teams and all leaders to this commitment. We look forward to extending our culture of proactive inclusion to the great teams at Activision Blizzard.

Around the world, there’s no more exciting place for fun and connection than video games. And there’s never been a better time to play than now. We look forward to welcoming all of our friends at Activision Blizzard to Microsoft Gaming and extending the joy and community of gaming to everyone.

REDMOND, Wash. and Santa Monica, Calif. – Jan. 18, 2022

Microsoft will acquire Activision Blizzard for $95.00 per share. The transaction is valued at $68.7 billion, including Activision Blizzard’s net cash. When the deal closes, Microsoft will become the world’s third-largest game company by revenue, behind Tencent and Sony. The proposed acquisition includes iconic franchises from Activision, Blizzard and King studios such as “Warcraft,” “Diablo,” “Overwatch,” “Call of Duty” and “Candy Crush,” as well as global eSports operations through Major League Gaming. The company has studios around the world and employs nearly 10,000 people.

Bobby Kotick will continue to serve as CEO of Activision Blizzard, and he and his team will remain focused on further strengthening the company’s culture and accelerating business growth. Upon completion of the transaction, the Activision Blizzard business will report to Phil Spencer, CEO of Microsoft Gaming.

“Gaming is the most dynamic and exciting category of entertainment across all platforms today and will play a key role in the evolution of metaverse platforms,” said Satya Nadella, chairman and CEO of Microsoft. “We’re investing heavily in world-class content, community and the cloud to usher in a new era of gaming that puts players and developers at the center and makes gaming safe, inclusive and accessible for all.”

“Gamers around the world love Activision Blizzard games, and we believe the creative teams have their best work ahead of them,” said Phil Spencer, CEO of Microsoft Gaming. “Together, we will build a future where people can play the games they want, virtually anywhere they want.”

“For more than 30 years, our incredibly talented teams have created some of the most successful games,” said Bobby Kotick, CEO, Activision Blizzard. “Combining Activision Blizzard’s world-class talent and exceptional franchises with Microsoft’s technology, distribution, access to talent, ambitious vision and shared commitment to gaming and inclusion will help ensure our success in an increasingly competitive industry.”

Mobile is the largest segment in gaming, with nearly 95% of all gamers worldwide enjoying games on mobile. Through great teams and great technology, Microsoft and Activision Blizzard will give gamers the ability to enjoy the most immersive games like “Halo” and “Warcraft” virtually anywhere. And with games like “Candy Crush,” Activision Blizzard’s mobile business represents a significant presence and opportunity for Microsoft in this fast-growing segment.

The acquisition also bolsters Microsoft’s Game Pass portfolio with plans to add Activision Blizzard games to Game Pass, which has reached a new milestone of more than 25 million subscribers. With nearly 400 million monthly active players in 190 countries and three billion-dollar Activision Blizzard franchises, this acquisition makes Game Pass one of the most attractive and diverse game content offerings in the industry. Upon completion of the transaction, Microsoft will have 30 internal game development studios, as well as additional publishing and Esports production capabilities.

The transaction is subject to customary closing conditions and completion of regulatory review and Activision Blizzard stockholder approval. The transaction is expected to close in fiscal 2023 and will be accretive to non-GAAP earnings per share upon closing. The transaction has been approved by the boards of directors of Microsoft and Activision Blizzard.

Advisor
Goldman Sachs & Co. LLC serves as financial advisor to Microsoft, and Simpson Thacher & Bartlett LLP serves as legal advisor. Allen & Company LLC serves as financial advisor to Activision Blizzard, and Skadden, Arps, Slate, Meagher & Flom LLP serves as legal counsel.

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Source: Microsoft