Microsoft Corporation is signing a deal to buy Activision Blizzard at a whopping $68.7 billion. With the growth of metaverse platforms, Microsoft looks to edge ahead.
Blizzard suffered a lot in the past few years owing to the company’s fiendish work culture. The class-action lawsuit that followed, buried Blizzard’s years of reputation.
Even though the games that Blizard publishes and owns are massively played, the corporation is currently at its wit’s end. It cannot prevent the bleeding expenses and people from quitting their jobs.
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People in high positions, both developers and executives have left positions empty. Microsoft looks to plug that leak. Hence, a few changes might be necessary.
Microsoft will become the third-largest gaming company after acquiring Activision Blizzard.
Microsoft looks to become the biggest revenue earner from the gaming industry. With the final deal signed, Microsoft becomes the third-largest Gaming company by revenue.
The top 2 spots are owned by Tencent and Sony respectively. Last year, Microsoft acquired Bethesda, the creators of the Skyrim and Fallout series.
The deal will value Activision at $68.7 billion. That is far in excess of the $26 billion Microsoft paid to possess LinkedIn in 2016.
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Microsoft plans to add numerous of Activision’s games to Xbox Game Pass once the deal closes. With the ownership of Activision, Microsoft soon publishes titles like Warcraft, Diablo, Overwatch, Call of Duty and Candy Crush.
“ Upon close, we’ll offer as numerous Activision Blizzard games as we will within Xbox Game Pass and PC Game Pass. Both new titles and games from Activision Blizzard’s fantastic catalogue.
-Microsoft’s CEO of gaming Phil Spencer.
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Changes are due at Activision Blizzard following the California lawsuit.
In an industry driven by blockbuster franchises, Activision makes a number of the foremost popular titles. The catalogue has Call of Duty and Candy Crush.
Yet, the corporation is overwhelmed by employee uprising. There have been allegations of sexual aggravation and discrimination in recent months.
The deal may additionally strengthen the company’s hand within the so-called metaverse. Metaverse is the nascent world of virtual and stoked reality. At present, the metaverse is more of a buzzword than a flourishing business.
But, it’s attracted huge quantities of investment and talent. Facebook renamed its parent company to Meta late last year to emphasize its commitment.
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Microsoft’s proposal of $95 per share is at a premium of $45 to Activision’s Friday close. Shares of Activision gained over 38 per cent at $65.39 when we last checked.
“Gaming is the most dynamic and stimulating category in entertainment across all platforms currently. It will play a crucial part in the development of metaverse platforms.
-Microsoft Chief Executive Officer (CEO), Satya Nadella.
What is next for Microsoft Gaming and Activision?
Microsoft Gaming company says Bobby Kotick serves as CEO for now. Kotick won’t remain once the deal is fully closed. Though, after the transition period to Microsoft of course.
Spencer, formerly head of gaming at Microsoft, is now CEO of Microsoft Gaming. Also, the company says the Activision Blizzard business will report directly to Spencer.
But, will gaming become a thing only for the fortunate with Microsoft’s strong intervention. Microsoft Gaming’s rush to buy Activision Blizzard is to assert a monopoly.
Except, it would everyone involved with gaming in some way. This is certainly a move to battle Steam‘s prowess in digital gaming distribution.
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