Rajkotupdates.news Microsoft has announced that it will acquire Activision Blizzard for $68 billion, which is roughly equivalent to Rs 5 lakh crore. Microsoft will be spending $95 per share (Rs 7000) to acquire the gaming giant. This marks Microsoft’s second-largest acquisition ever, after its purchase of LinkedIn for $26.2 billion (roughly Rs 2 lakh crore).
Microsoft: Third-Largest Gaming Company by Revenue
Rajkotupdates.news Microsoft has surpassed Nintendo to become the world’s third-largest gaming company after Tencent and Sony following its acquisition of Activision Blizzard, the creator of popular games such as Candy Crush, Call of Duty, and Tony Hawk’s Pro Skate. However, the company has recently faced several lawsuits regarding its employees’ inappropriate behavior.
After the acquisition, Activision Blizzard will report to Phil Spencer, who heads Microsoft’s Xbox division. Although Bobby Kotick, the current CEO of Activision, will remain in his position for a while, some reports suggest that he will eventually step down.
This acquisition is significant for Microsoft as it strengthens its position in the gaming industry. In the past, Microsoft has acquired other gaming companies like Mojang and Bethesda, and with this acquisition, it aims to compete with Meta’s plans to expand its metaverse.
Microsoft’s purchase of Activision also provides it access to some of the most popular game franchises, including Call of Duty, Diablo, and World of Warcraft. This enables Rajkotupdates.news microsoft to attract a larger audience and bring more players to its platforms.
Furthermore, the partnership between Xbox and Activision could bring significant changes in how games are developed, resulting in more immersive experiences for gamers. With Microsoft’s resources and expertise in gaming technology, Activision could benefit greatly from this partnership.
Why Is This Acquisition Important For Microsoft?
Microsoft’s acquisition of Activision Blizzard for $68.7 billion has shocked the gaming industry. This move will combine one of the biggest gaming companies in the world, Activision, with Microsoft’s Xbox gaming division to create a gaming empire that can compete with Tencent and Sony.
This partnership is expected to result in high-quality games that can be played on various platforms, such as consoles, PCs, and mobile phones. Microsoft’s purchase of Activision is a strategic move to catch up to its competitors and get a strong foothold in the gaming industry.
Once the deal is completed, Microsoft is expected to make over $7 billion a year from gaming, making it the third-largest gaming company in the world by revenue. At present, Tencent is the top earner in the gaming industry, making $23.8 billion, followed by Sony with $21.1 billion. With its purchase of Activision, Microsoft aims to catch up with its competitors and establish itself as a major player in the gaming industry.
Overview of Activision Blizzard
Activision Blizzard is a renowned gaming company that is home to some of the most popular gaming franchises, including Call of Duty, World of Warcraft, Diablo, and Candy Crush. However, some Activision Blizzard employees have expressed concerns about their future with the company following the acquisition by Microsoft. There are worries about job losses and changes in the company’s culture. It remains unclear how Microsoft plans to integrate Activision Blizzard into its existing gaming division, Xbox, and what this means for Activision Blizzard employees.
Deal and Its Implications
While the acquisition is a risky move for Microsoft, it demonstrates the company’s commitment to being a major player in the gaming industry. Microsoft’s move into the top three gaming companies could lead to future growth and expansion. However, adding a new business can be challenging, particularly when it involves merging different cultures and ways of doing things. The acquisition could also lead to more mergers and acquisitions in the gaming industry, resulting in more competition and new ideas.
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Critics have expressed concern about how the acquisition will impact innovation in the gaming industry. They fear that large companies like Microsoft may be less willing to take risks when developing new games or franchises and may prioritize making money over being creative. There is also concern that consolidation may make the industry less diverse and unique. Nonetheless, the acquisition of Activision Blizzard is a significant move by Microsoft that has the potential to change the gaming industry’s landscape.
