Microsoft to acquire Activision Blizzard

Microsoft has announced plans to acquire game developer and interactive content publisher Activision Blizzard (AB). The move will see Microsoft take ownership of iconic franchises from the Activision, Blizzard and King studios including Warcraft, Diablo, Overwatch, Call of Duty and Candy Crush, as well as global eSports activities through Major League Gaming.

AB will be acquired for $95 per share, in an all-cash transaction valued at $68.7 billion, inclusive of the company's net cash. When the transaction closes, Microsoft will become the world's third-largest gaming company by revenue, behind Tencent and Sony. AB has studios around the world and employs nearly 10,000 staff.

Bobby Kotick will continue to serve as CEO of AB, where he and his team will maintain their focus on driving efforts to further strengthen the company's culture and accelerate business growth. Once the deal closes, the AB business will report to Phil Spencer, CEO, Microsoft Gaming.

"Gaming is the most dynamic and exciting category in entertainment across all platforms today and will play a key role in the development of metaverse platforms," said Satya Nadella, Chairman and CEO, Microsoft.

"We're investing deeply in world-class content, community and the cloud to usher in a new era of gaming that puts players and creators first and makes gaming safe, inclusive and accessible to all."

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

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