Microsoft Acquires Activision Blizzard for $68.7 Billion

In a double-down move on the gaming side of the industry, Microsoft announced today that it is acquiring Activision Blizard for $68.7 Billion. Microsoft announces the acquisition in a not-so-subtle hint that it intends to compete further with gaming giants the size of Sony for a bigger slice of the $173.70 billion gaming market. This move also reflects Microsoft’s desire to be a pioneer in the “metaverse” adoption efforts.

Microsoft already possesses the third-largest share in the gaming sector; investing in and acquiring major game developers as well as launching its own cloud gaming service. Nevertheless, its acquisition of Activision Blizzard in a 68.7 Billion dollar deal marks a historic milestone, even for a company the size of Microsoft.

“Around the world, there is no more exciting venue for fun and connection than video games. And there has never been a better time to play than right now. As we extend the joy and community of gaming to everyone, we look forward to welcoming all of our friends at Activision Blizzard to Microsoft Gaming”, said Phil Spencer, CEO, Microsoft Gaming.

The post-acquisition times are promising for Microsoft’s Xbox gaming platform as Activision’s rich gaming library will undoubtedly provide a competitive advantage for Microsoft over Sony’s Playstation. Moreover, Microsoft will have its hands on the creators of Call of Duty, Warcraft, Candy Crush, StarCraft, and many more of Activision’s top talent, which represent an invaluable addition to Microsoft’s already talented creators.

It has been a busy year for Microsoft. In late 2021, Microsoft announced Windows 11, Windows Server 2022 as well as Office 2021. The Activision deal is expected to close sometime in 2023 - a slow but expected process for a deal of this magnitude. If past acquisitions were any indication, it is safe to estimate that Microsoft will make the most out of this opportunity.

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