On January 18, 2022, most major news outlets reported that the software giant Microsoft will be buying Activision Blizzard in a record 68.7 billion all-cash transaction. The video game industry has long since been the main platform for the expanding metaverse, with many major internet companies, including Google and Apple, also showing interest in this growing field. Yet the video game industry has long since also been important to Microsoft since its early days in the 1980s, and with this deal speculation now increases that Activision Blizzard may become an Xbox exclusive
Learn more information about Activision Blizzard: https://investor.activision.com/news-releases/news-release-details/activision-blizzard-commits-expanded-workplace-initiatives
The former CEO of Xbox, Phil Spencer, will head the team, and his outlook is a bright one for the video game industry. Activision has long since had an incredible series of video game franchises which include Call of Duty and World of Warcraft. It now merges with Microsoft gaming and its line of hits such as Halo, Forza and Fallout. With this merger, Spencer hinted that he wants only to accelerate business growth and to find new genres for the video game industry to tap. The CEO of Activision Blizzard, Bobby Kotick will be stepping down after the deal, and Activision will report directly to Spencer, who will now be head of Microsoft Gaming. Kotick previously had been the long running CEO of Activision and Blizzard since its inception in 2008, and he had been the CEO of Activision in previous years.
With so many industry giants now looking with newfound interest at the video game industry, this merger only promises further expansion into this area. Yet at 45% over the stock price and with the deal as all-cash, both parties agree that this was a winning situation for the shareholders. Will such an aggressive play bode well for Microsoft Gaming? Only time can tell, yet the future looks promising.