Microsoft to acquire Activision Blizzard in $70 billion deal

Microsoft is set to acquire Activision Blizzard according to reports that surfaced earlier today (January 18th). In news first reported by The Wall Street Journal, before being corroborated by a post on the Microsoft website, the Windows developer will acquire the publisher of games like World of Warcraft, Overwatch, and Call of Duty, in a deal worth over $70 billion.

The all-cash transaction will see Microsoft pay $68.7 billion to acquire a controlling stake in Activision Blizzard. This is on top of an additional “breakup fee” of $3 billion. The deal will see Microsoft become the third largest video game company by revenue in the world, behind only Sony and Tencent. 

The move will also see Microsoft become the force behind the Blizzard, Activision, and King. This puts Microsoft in control of numerous iconic esports franchises and IPs including Call of Duty, Warcraft, StarCraft, Overwatch, Hearthstone, and Major League Gaming. The company will also inherit the likes of Candy Crush, Diablo, Spyro the Dragon, Tony Hawk's Pro Skater, and plenty more familiar titles.

Observers and fans of Activision Blizzard titles will be all too familiar with the recent woes of the company. Amid broad claims of harassment and abuse within the company, employees staged walkouts, and the CEO Bobby Kotick faces ongoing allegations, as the company reportedly hides the worst of its problems.

Beyond this there’s complaints from the players of many of Activision Blizzard’s titles. World of Warcraft’s declining player base is frequently outspoken on the many issues with the game. Call of Duty pros have complaints about the competitive format, and many prominent figures flat out hate Warzone. 

All this has led many to think that Microsoft may have scooped a deal. Especially as the share price of Activision Blizzard hit a record high in January 2021. Only to fall to three year low in December of the same year. But even with such a bargain, Microsoft will be inheriting a plethora of problems with its purchase.

Mergers and acquisitions aren’t the most riveting pieces of news for gamers. But when it comes to Activision Blizzard, it could be the piece of good news players have waited for years to hear. Activision’s 2008 merger with Blizzard is what many point to as the decline of the latter game studio. Blizzard at the time was one of the highest regarded developers in gaming.

Another merger, to fix the one that went so bad isn’t so far fetched. Microsoft clearly has some sense of what its consumers want. Xbox Game Pass reportedly hit around 18 million subscribers in 2021. The Xbox One sold around 50 million units, and Xbox boss Phil Spencer certainly talks a good game.

All of this combined seems to suggest that the acquisition is a move in the right direction. Something rare for Activision Blizzard in recent years. And while the creation of Disney-like monopolies that control all of gaming is concerning, right it all sounds like good news.