Microsoft to acquire Activision Blizzard to bring the joy and community of gaming to everyone, across every device - Stories (2024)

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Microsoft to acquire Activision Blizzard to bring the joy and community of gaming to everyone, across every device - Stories (1)

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Legendary games, immersive interactive entertainment and publishing expertise accelerate growth in Microsoft’s Gaming business across mobile, PC, console and cloud.

REDMOND, Wash. and Santa Monica, Calif. – Jan. 18, 2022 With three billion people actively playing games today, and fueled by a new generation steeped in the joys of interactive entertainment, gaming is now the largest and fastest-growing form of entertainment. Today, Microsoft Corp. (Nasdaq: MSFT) announced plans to acquire Activision Blizzard Inc. (Nasdaq: ATVI), a leader in game development and interactive entertainment content publisher. This acquisition will accelerate the growth in Microsoft’s gaming business across mobile, PC, console and cloud and will provide building blocks for the metaverse.

Microsoft will acquire Activision Blizzard for $95.00 per share, in an all-cash transaction valued at $68.7 billion, inclusive of Activision Blizzard’s net cash. When the transaction closes, Microsoft will become the world’s third-largest gaming company by revenue, behind Tencent and Sony. The planned acquisition includes iconic franchises from the Activision, Blizzard and King studios like “Warcraft,” “Diablo,” “Overwatch,” “Call of Duty” and “Candy Crush,” in addition to global eSports activities through Major League Gaming. The company has studios around the world with nearly 10,000 employees.

Bobby Kotick will continue to serve as CEO of Activision Blizzard, and 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 Activision Blizzard 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.”

“Players everywhere love Activision Blizzard games, and we believe the creative teams have their best work in front of them,” said Phil Spencer, CEO, 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. “The combination of Activision Blizzard’s world-class talent and extraordinary franchises with Microsoft’s technology, distribution, access to talent, ambitious vision and shared commitment to gaming and inclusion will help ensure our continued success in an increasingly competitive industry.”

Mobile is the largest segment in gaming, with nearly 95% of all players globally enjoying games on mobile. Through great teams and great technology, Microsoft and Activision Blizzard will empower players to enjoy the most-immersive franchises, like “Halo” and “Warcraft,” virtually anywhere they want. 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 launch Activision Blizzard games into Game Pass, which has reached a new milestone of over 25 million subscribers. With Activision Blizzard’s nearly 400 million monthly active players in 190 countries and three billion-dollar franchises, this acquisition will make Game Pass one of the most compelling and diverse lineups of gaming content in the industry. Upon close, Microsoft will have 30 internal game development studios, along with additional publishing and esports production capabilities.

The transaction is subject to customary closing conditions and completion of regulatory review and Activision Blizzard’s shareholder approval. The deal is expectedto 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.

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

Webcast details

Microsoft Chairman and CEO Satya Nadella; Bobby Kotick, CEO, Activision Blizzard; CEO, Microsoft Gaming, Phil Spencer; and Microsoft Chief Financial Officer Amy Hood will host a webcast for investors and media on Jan. 18, 2022, at 6 a.m. Pacific time/9 a.m. Eastern time regarding this transaction.

  • S.:(877) 407-0666(no password required)
  • International:+1-201-689-8023(no password required)
  • Webcast: https://aka.ms/MS-Investor-Call

There will be a recording of the conference call available shortly after the call until Friday, Jan. 28, 2022, at 5 p.m. Pacific time. To access that recording:

  • S.: (877) 660-6853
  • International: +1 (201) 612-7415
  • Conference ID: 13726291

For more information, please visit theblog postfrom Phil Spencer, CEO, Microsoft Gaming. Related imagery is also available. For broadcast quality b-roll and audio, please contact[emailprotected].

Fast facts on gaming

  • The $200+ billion gaming industry is the largest and fastest-growing form of entertainment.
  • In 2021 alone, the total number of video game releases was up 64% compared to 2020 and 51% of players in the U.S. reported spending more than 7 hours per week playing across console, PC and mobile.
  • 3 billion people globally play games today, which we expect to grow to 4.5 billion by 2030.
  • More than 100 million gamers, including over 25 million Xbox Game Pass members, play Xbox games across console, PC, mobile phones and tablets each month.

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About Microsoft
Microsoft (Nasdaq “MSFT” @microsoft) enables digital transformation for the era of an intelligent cloud and an intelligent edge. Its mission is to empower every person and every organization on the planet to achieve more.

About Activision Blizzard

Our mission, to connect and engage the world through epic entertainment has never been more important. Through communities rooted in our video game franchises we enable hundreds of millions of people to experience joy, thrill and achievement. We enable social connections through the lens of fun, and we foster purpose and meaning through competitive gaming. Video games, unlike any other social or entertainment media, have the ability to break down barriers that can inhibit tolerance and understanding. Celebrating differences is at the core of our culture and ensures we can create games for players of diverse backgrounds in the 190 countries our games are played.

As a member of the Fortune 500 and as a component company of the S&P 500, we have an extraordinary track record of delivering superior shareholder returns for over 30 years. Our sustained success has enabled the company to support corporate social responsibility initiatives that are directly tied to our franchises. As an example, our Call of Duty Endowment has helped find employment for over 90,000 veterans.

Learn more information about Activision Blizzard and how we connect and engage the world through epic entertainment on the company´s website, www.activisionblizzard.com

Forward-looking statements

This presentation contains certain forward-looking statements within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 with respect to the proposed transaction and business combination between Microsoft and Activision Blizzard, including statements regarding the benefits of the transaction, the anticipated timing of the transaction and the products and markets of each company. These forward-looking statements generally are identified by the words “believe,” “project,” “predicts,” “budget,” “forecast,” “continue,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “could,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions (or the negative versions of such words or expressions). Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this presentation, including but not limited to: (i) the risk that the transaction may not be completed in a timely manner or at all, which may adversely affect Activision Blizzard’s business and the price of the common stock of Activision Blizzard, (ii) the failure to satisfy the conditions to the consummation of the transaction, including the adoption of the merger agreement by the stockholders of Activision Blizzard and the receipt of certain governmental and regulatory approvals, (iii) the occurrence of any event, change or other circumstance that could give rise to the termination of the merger agreement, (iv) the effect of the announcement or pendency of the transaction on Activision Blizzard’s business relationships, operating results, and business generally, (v) risks that the proposed transaction disrupts current plans and operations of Activision Blizzard or Microsoft and potential difficulties in Activision Blizzard employee retention as a result of the transaction, (vi) risks related to diverting management’s attention from Activision Blizzard’s ongoing business operations, (vii) the outcome of any legal proceedings that may be instituted against Microsoft or against Activision Blizzard related to the merger agreement or the transaction, (viii) the ability of Microsoft to successfully integrate Activision Blizzard’s operations, product lines, and technology, and (ix) the ability of Microsoft to implement its plans, forecasts, and other expectations with respect to Activision Blizzard’s business after the completion of the proposed merger and realize additional opportunities for growth and innovation. In addition, please refer to the documents that Microsoft and Activision Blizzard file with the SEC on Forms 10-K, 10-Q and 8-K. These filings identify and address other important risks and uncertainties that could cause events and results to differ materially from those contained in the forward-looking statements set forth in this press release. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Microsoft and Activision Blizzard assume no obligation and do not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

Additional information and where to find it

In connection with the transaction, Activision Blizzard, Inc. will file relevant materials with the SEC, including a proxy statement on Schedule 14A. Promptly after filing its definitive proxy statement with the SEC, Activision Blizzard will mail the definitive proxy statement and a proxy card to each stockholder entitled to vote at the special meeting relating to the transaction. INVESTORS AND SECURITY HOLDERS OF ACTIVISION BLIZZARD ARE URGED TO READ THESE MATERIALS (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ANY OTHER RELEVANT DOCUMENTS IN CONNECTION WITH THE TRANSACTION THAT ACTIVISION BLIZZARD WILL FILE WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT ACTIVISION BLIZZARD AND THE TRANSACTION. The definitive proxy statement, the preliminary proxy statement and other relevant materials in connection with the transaction (when they become available), and any other documents filed by Activision Blizzard with the SEC, may be obtained free of charge at the SEC’s website (http://www.sec.gov) or at the Activision Blizzard website (https://investor.activision.com) or by writing to Activision Blizzard, Investor Relations, 3100 Ocean Park Boulevard, Santa Monica, California, 90405.

Activision Blizzard and certain of its directors and executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies from Activision Blizzard’s stockholders with respect to the transaction. Information about Activision Blizzard’s directors and executive officers and their ownership of Activision Blizzard’s common stock is set forth in Activision Blizzard’s proxy statement on Schedule 14A filed with the SEC on April 30, 2021. To the extent that holdings of Activision Blizzard’s securities have changed since the amounts printed in Activision Blizzard’s proxy statement, such changes have been or will be reflected on Statements of Change in Ownership on Form 4 filed with the SEC. Information regarding the identity of the participants, and their direct or indirect interests in the transaction, by security holdings or otherwise, will be set forth in the proxy statement and other materials to be filed with SEC in connection with the transaction.

For more information, press only:

Microsoft Media Relations, Assembly Media for Microsoft, [emailprotected]

For more information, financial analysts and investors only:

Brett Iversen, General Manager, Investor Relations, (425) 706-4400

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://www.microsoft.com/news. Web links, telephone numbers and titles were correct at time of publication, but may since have changed. Shareholder and financial information, as well as today’s 6:00 a.m. Pacific time conference call with investors and analysts, is available at http://www.microsoft.com/en-us/investor.

Microsoft to acquire Activision Blizzard to bring the joy and community of gaming to everyone, across every device - Stories (2024)

FAQs

What was the reason for Microsoft acquisition of Activision Blizzard? ›

This was at the height of the metaverse trend and would be the largest gaming industry deal in history. Microsoft is said to have wanted to acquire Activision Blizzard to further improve its presence in the gaming industry, and the metaverse, and to consolidate itself as the de facto king of cloud gaming.

How did Activision acquire Blizzard? ›

Activision purchased dozens of companies, including game developers Raven Software, Treyarch and Infinity Ward. The company merged with Irvine-based Blizzard Entertainment in 2008 in a $19-billion deal, the largest merger or acquisition in the video game industry at that time, making it Activision Blizzard.

What does Microsoft buying Activision mean for gaming? ›

From a development perspective, the acquisition has the potential to prevent indie games from being made. It's likely Microsoft would focus its budget on pushing in-house content into its Game Pass service rather than giving smaller indie studios the budget to develop their own games for Xbox, Ward says.

What did Microsoft offer for ATVI? ›

Microsoft (MSFT) on Friday finalized its $69 billion purchase of "Call of Duty" maker Activision Blizzard (ATVI), according to a regulatory filing from the company Friday, in what is the largest-ever merger for the gaming market.

Is Microsoft buying Blizzard a good thing? ›

As Singh put it, in one shot, the Activision purchase enables Microsoft to shorten time-to-market with new gaming products, expand its reach, and deepen its penetration in those markets.

Why is Activision Blizzard being sued? ›

The lawsuit noted that the Department of Justice last year sued Activision Blizzard for violating the Sherman Act by “imposing rules that limited competition for players in Activision's Overwatch and Call of Duty professional esports leagues and suppressed the wages of esports players in these leagues.” Under a ...

What is the blizzard controversy? ›

California's civil rights agency sued Santa Monica-based Activision Blizzard in July 2021, alleging that female employees faced constant sexual harassment, that few women were named to leadership roles and that when they were, they earned less salary, incentive pay and total compensation than male peers.

Who currently owns Activision? ›

Microsoft has finalized its $68.7 billion deal to acquire Activision Blizzard, the publisher of Call of Duty, World of Warcraft, and Diablo. The Verge exclusively reported last week that Microsoft was planning to close today, and now it's official.

How much did Microsoft pay to acquire Activision Blizzard? ›

Acquisition of Activision Blizzard by Microsoft
TargetActivision Blizzard
TypeFull acquisition
CostUS$75.4 billion
InitiatedJanuary 18, 2022
CompletedOctober 13, 2023
4 more rows

What are the consequences of Microsoft buying Activision? ›

The deal was also criticized as it was believed to lead to “higher prices, fewer choices, or less innovation for UK gamers.” The main concern was cloud-based gaming, with the CMA believing that Microsoft's influence would be too great.

Why does Microsoft want Call of Duty? ›

By making one of the most popular and lucrative gaming franchises available through Game Pass on launch day, Microsoft is leveraging the immense appeal of “Call of Duty” to attract more subscribers to its service, and to move further toward being platform agnostic (meaning that you can play the game on your laptop, PC, ...

Will COD leave PlayStation? ›

Sony signed a binding 10-year deal with Microsoft to keep the best-selling Call of Duty series available on PlayStation. The deal ameliorates some concerns that Microsoft would use its power in the gaming market to cement dominance after the close of its Activision Blizzard acquisition.

What is Microsoft Activision biggest deal? ›

Microsoft closed its $69 billion deal for Activision Blizzard after CMA cleared the acquisition, saying the restructured deal substantially addressed its earlier concerns. U.S. FTC asks an appeals court in California to overturn a lower court decision that the acquisition is legal.

Does Bill Gates still own Microsoft? ›

Bill Gates – 102,992,934 Shares – 1.38%

Since stepping down in 2020, he has stopped publicly reporting his ownership of Microsoft.

Why is Microsoft buying game companies? ›

Microsoft says the move would make it the third-largest gaming company by revenue, following Tencent and Sony. The company, already a giant in the market, would gain even more leverage over how games are made and distributed.

What is the purpose of Activision Blizzard? ›

We create the most epic interactive gaming and entertainment experiences. Our platforms immerse players in new, unimagined worlds and offer countless ways to play within them. We build communities that bring people together with purpose and belonging.

What happened between Activision and Blizzard? ›

Both Activision and Blizzard maintained distinct corporate identities, with independent development and publishing streams. In January 2022 Microsoft announced its intention to acquire Activision Blizzard for $68.7 billion; that deal was concluded in October 2023.

Why is Microsoft investing in gaming? ›

By making one of the most popular and lucrative gaming franchises available through Game Pass on launch day, Microsoft is leveraging the immense appeal of “Call of Duty” to attract more subscribers to its service, and to move further toward being platform agnostic (meaning that you can play the game on your laptop, PC, ...

Why does Xbox want Activision? ›

On the line is not just the $70 billion that Microsoft wants to pay, but perhaps the future of gaming in general. Why does Microsoft want to do this deal? Buying Activision will give Microsoft ownership of many of the world's biggest games: not just Call of Duty, but others, including mobile behemoths like Candy Crush.

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