Microsoft Makes its Second-Largest Acquisition Ever, Transforming the Gaming Landscape Permanently!
In a game-changing move, Microsoft has set its sights on purchasing Activision Blizzard, one of the leading global gaming corporations. Why does this matter for Microsoft?
Microsoft to Purchase Activision Blizzard for Approximately Rs 5 Lakh Crore Microsoft has declared its intentions to spend an enormous sum of $68 billion, equivalent to around Rs 5 lakh crore, to acquire Activision Blizzard. Thus, Microsoft would be paying around $95 per share (approximately Rs 7000) to gain control of this gaming behemoth.
This acquisition stands as Microsoft’s second-largest, only overshadowed by their previous purchase of LinkedIn for $26.2 billion (around Rs 2 lakh crore).
This move catapults Microsoft to the rank of the third largest gaming company globally, surpassing Nintendo and only falling behind Tencent and Sony.
What is Activision Blizzard?
Activision Blizzard, known for developing hit games such as Candy Crush, Call of Duty, and Tony Hawk’s Pro Skate, has recently been embroiled in numerous lawsuits regarding employee misconduct.
Once the transaction is finalized, the newly acquired company will report to Phil Spencer, the head of Microsoft’s Xbox division. Although Activision’s incumbent CEO Bobby Kotick will remain during this transitional phase, he is expected to step down eventually, according to certain reports.
What Does This Acquisition Mean for Microsoft? Microsoft has been particularly assertive in solidifying its standing in the gaming industry, and the recent acquisition of Activision Blizzard represents a pinnacle in this campaign.
Microsoft previously purchased Mojang, creators of Minecraft, for $2.5 billion in 2014, followed by the acquisition of Bethesda for $7.5 billion in 2021.
Additionally, Microsoft aims to rival Meta (previously known as Facebook) and its ambitious plans for metaverse expansion. Microsoft certainly aspires to claim a portion of this emerging sector.
Already in the market with the advanced augmented reality headset, HoloLens, Microsoft’s acquisition of Activision is likely to ignite further innovations in the domains of gaming and AR/VR.