Microsoft announced on Tuesday that it has agreed to buy Activision Blizzard, a pioneer in game production, in an all-cash deal worth $68.7 billion, which would be the company’s largest-ever deal and the largest in the gaming business.
“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,” Microsoft Chairman and CEO Satya Nadella, declared in a statement.
The agreement will also provide building blocks for the metaverse. This futuristic vision has gathered momentum recently, with tech corporations, such as Microsoft, Epic Games, and Facebook, which rebranded itself as Meta, focused on bringing the immersive digital realm to life.
The Xbox creator has emphasised the value of gaming to the firm and its future plans, which place the user at the centre of the gaming experience. With this deal, Microsoft Gaming will gain access to legendary titles from Activision, Blizzard, and King studios such as Warcraft, Diablo, Overwatch, Call of Duty, and Candy Crush.
“Together we will build a future where people can play the games they want, virtually anywhere they want.” Microsoft Gaming CEO Phil Spencer shared.
According to the Redmond, Washington-based company has over 100 million gamers, including 25 million Game Pass subscribers, play Xbox games. Thanks to Activision Blizzard’s approximately 400 million monthly active users, this deal will also strengthen the Xbox Game Pass portfolio.
Bobby Kotick, the CEO of Activision Blizzard, will continue to lead the company and report to Phil Spencer. According to the storey, Kotick is anticipated to quit when the acquisition is complete.
The global gaming enterprise recorded revenues of $180.3 billion the previous year, with the digit expected to touch $218.8 billion by 2024, as per data analytics company Newzoo.
After its $26.2 billion acquisition of LinkedIn in 2016, Microsoft’s largest-ever purchase is slated to finish in the fiscal year 2023. Given that its acquisition of AI voice firm Nuance for $19.7 billion came under regulatory investigation, the agreement could be vulnerable to antitrust scrutiny.
Last year, the Xbox creator purchased ZeniMax Media for $ 7.5 billion and has been making substantial investments and advancements in gaming, including the introduction of its next-generation consoles, cloud gaming, new apps, and a redesigned digital store.
According to Microsoft, approximately three billion people play games globally today, which is expected to rise to 4.5 billion by 2030.