Microsoft completes $69bn takeover of Call of Duty maker Activision Blizzard

Microsoft completes $69bn takeover of Call of Duty maker Activision Blizzard

Microsoft has recently finalized its acquisition of Activision Blizzard, the maker of popular video game franchise Call of Duty, in a record-breaking $69 billion deal. The takeover comes after receiving approval from UK regulators, allowing Microsoft to expand its dominance in the gaming industry. With the completion of the deal, Microsoft now has control over highly lucrative games such as Call of Duty, World of Warcraft, and Candy Crush. Despite concerns from rivals and regulators, Microsoft’s CEO of Gaming, Phil Spencer, reassured gamers that the company remains committed to offering a welcoming environment for players across various platforms.

Microsoft completes $69bn takeover of Call of Duty maker Activision Blizzard

▶▶▶▶ [AMAZON] Discount CODE◀◀◀◀◀

Overview of the deal

Microsoft has successfully completed its acquisition of Activision Blizzard, the maker of popular video games such as Call of Duty. The deal, valued at $69 billion, is the largest acquisition in the history of the gaming industry. As a major player in the gaming market with its Xbox console, Microsoft’s takeover of Activision Blizzard marks a significant move to expand its influence and strengthen its position in the industry.

Regulatory approval and concerns

The acquisition of Activision Blizzard by Microsoft required regulatory approval, including from UK authorities. The Competition and Markets Authority (CMA) initially had concerns about the deal and blocked it. However, after Microsoft addressed the concerns raised by the CMA, the deal was eventually approved. This approval allows Microsoft to move forward with its plans to integrate Activision Blizzard into its gaming portfolio.

▶▶▶▶ [AMAZON] Discount CODE◀◀◀◀◀

Leadership changes at Activision Blizzard

In the wake of the acquisition, Bobby Kotick, the CEO of Activision Blizzard, announced his resignation. Kotick will step down at the end of 2023, and the transition will be overseen by Phil Spencer, the chief executive of Microsoft Gaming. This change in leadership marks a significant shift for Activision Blizzard and sets the stage for the integration of the company with Microsoft.

Revised deal and concessions

As part of the revised deal, Microsoft has transferred the rights to distribute Activision’s games on consoles and PCs over the cloud to Ubisoft, a French video game publisher. Despite this concession, Microsoft retains control over key game titles such as Call of Duty, World of Warcraft, and Candy Crush, which are expected to generate substantial revenues for the company. The revised deal aims to strike a balance between competition in the gaming industry and maintaining competitive prices for consumers.

Impact on gaming industry

Microsoft’s acquisition of Activision Blizzard has far-reaching implications for the gaming industry. The deal opens up new possibilities for gaming experiences, as well as fostering collaboration and competition among players from different platforms. It is expected to boost demand for Microsoft’s Xbox console and enhance the offerings of the Xbox Game Pass service, which gives subscribers access to a wide variety of games. Additionally, the acquisition positions Microsoft to expand its presence in the mobile gaming market.

Response from Sony and other competitors

While the deal has been met with enthusiasm by Microsoft and its supporters, Sony, the maker of the PlayStation console, has expressed opposition to the acquisition. Sony is concerned that popular Activision Blizzard titles could become exclusive to Xbox, diminishing competition in the industry. Microsoft’s growing presence in the gaming market has positioned the company as a formidable competitor to Sony and other industry leaders, such as Tencent.

CMA’s criticism of Microsoft’s conduct

Although the CMA eventually approved the deal, it criticized Microsoft’s conduct throughout the review process. The CMA accused Microsoft of employing tactics that were not conducive to engaging with regulatory authorities. The watchdog expressed disappointment in the prolonged proceedings and the resultant waste of time and resources. The CMA emphasized its commitment to making decisions independent of political influence and corporate lobbying.

Microsoft’s perspective on the deal

Microsoft acknowledged the CMA’s review of the deal and expressed gratitude for the regulator’s thoroughness and ultimate approval. The company views the acquisition of Activision Blizzard as a significant opportunity. Microsoft sees the deal as unlocking a world of possibilities, creating more ways to play and expanding its gaming offerings. The company is optimistic about the advantages and benefits the acquisition will bring to both gamers and Microsoft as a gaming industry leader.

Financial details of the takeover

The acquisition of Activision Blizzard by Microsoft involved a cash payment of $95 per share, totaling $69 billion. As part of the deal, Bobby Kotick, the outgoing CEO of Activision Blizzard, is set to receive a $400 million payout, while the chairman of Activision, Brian Kelly, will receive $100 million. The restructured agreement also includes the transfer of cloud streaming rights for Activision’s games to Ubisoft for 15 years, beyond the European Economic Area.

Future prospects and plans for Microsoft

With the acquisition of Activision Blizzard, Microsoft aims to expand its gaming offerings and strengthen its competition with industry leaders like Sony and Tencent. The company expects the gaming market to continue growing, and it plans to capitalize on this growth through strategic investments and partnerships. Microsoft’s long-term goals involve establishing itself as a leading player in the gaming industry and leveraging its well-established platform to innovate and deliver exceptional gaming experiences to a global audience.

▶▶▶▶ [AMAZON] Discount CODE◀◀◀◀◀