This deal is Microsoft’s largest deal to date. The move will allow it to grow its video game portfolio with famous Activision franchises like Call of Duty and Candy Crush while also exploring the metaverse.
Microsoft is making a multi-million dollar play for the metaverse after announcing the acquisition of video game developer Activision Blizzard.
The tech giant agreed to acquire Activision, the gaming company behind famous games like Call of Duty, World of Warcraft, and Diablo, for at least $68.7 billion. This deal is Microsoft’s largest acquisition to date, and it would intend to boost the company’s video game business by opening up a space in the metaverse industry.
The deal reportedly took place in cash and is expected to close by fiscal 2023. Microsoft paid $26 billion to acquire LinkedIn in 2016, which had been the company’s largest acquisition to date.
Microsoft has been looking to expand its video game business. Last year, the company acquired game maker Bethesda for $7.5 billion.
Microsoft Acquires Activision, and it is the Biggest deal it has Ever Done
Satya Nadella, CEO of Microsoft, commented that Microsoft’s latest deal sheds light on the long-term direction the company is taking. In addition, it is the company’s most prominent agreement in the video game sphere and its first big step into the metaverse.
Once the deal closes, Microsoft will add a roster of Activision video games to its Xbox Game Pass service, which currently has 25 million subscribers. Regarding the acquired games, Game Pass users will have access to popular franchises like Warcraft, Diablo, Call of Duty, Overwatch, and Candy Crush.
Phil Spencer, CEO of games at Microsoft Phil Spencer, said that once they close the deal, Microsoft will offer as many Activision Blizzard games as they can within Xbox Game Pass and PC Game Pass. New titles and games from the incredible Activision Blizzard catalogue will be available for Microsoft users.
The deal could also ensure tremendous success for Microsoft in the realm of video games and virtual worlds. Activision Blizzard counts on nearly 400 million monthly active players in 190 countries and $3 billion franchises.
The technology giant pointed out in this regard that, once they close the negotiation, it will allow it to become the third-largest game company by revenue, behind Tencent and Sony.
Microsoft added in the statement that this acquisition would accelerate the growth of Microsoft’s gaming business across mobile, PC, console, and cloud, providing building blocks for the metaverse.
By: Jenson Nuñez
