Microsoft Makes A Big Move By Buying Activision For $69 Billion
Microsoft is a giant tech company usually known for its operating systems and huge sums of money invested into other ventures such as gaming. A good example of this would be their very own gaming console, the Xbox series which started way back in 2021.
Recent news regarding Microsoft’s involvement in gaming such as the creation of Halo Infinite and Forza Horizon 5. The company has its own store for gaming which is the Microsoft gaming store.
Microsoft Makes Big Moves Towards the Metaverse
Microsoft’s venture into gaming doesn’t just stop with its game store, video games, and consoles. Recent news shows that the company has made a big move by purchasing Activision for a whopping sum of $69 billion.
Activision is a large video game publishing company known for many iconic games such as Call of Duty, Tony Hawk Pro skater series, and the legendary guitar hero game. Aside from this, Blizzard merged with Activision to form Activision Blizzard. Blizzard is also a gaming company well known for iconic games as well such as Diablo, Warcraft games, the World of Warcraft MMO, and the popular CCG (Collectible Card Game) Hearthstone.
Because of the acquisition, all of Activision Blizzard games will be added to their Microsoft Xbox’s Game Pass service which has an estimated amount of over 25 million subscribers. Add the already existing amount of player base into the mix and you way more than just 25 million!
An announcement taken directly from Microsoft states that they will be acquiring Activision Blizzard at a rate of $95.00 per share which leads to a total of nearly $68.7 billion, rounded up that would be $69 billion to make things easier. This deal will close in the 2023 fiscal year. When the deal happens, Microsoft will grow to be one of the biggest gaming companies in the world. In terms of revenue, it will be the third-largest in the world only behind Tencent and Sony.
Where does the Metaverse come in?
The CEO of Microsoft, Satya Nadella states that this acquisition will bolster the growth of its gaming services in all platforms including mobile, console, PC, the cloud, and ultimately the Metaverse. This acquisition is just a small step so that it can grow and expand in th Metaverse.
Nadela also said that people should expect the company integrates new Metaverse features in their gaming consoles which is something to look forward to. Now the exact method on how they will be doing so… still remains a mystery.
Just know that Microsoft is making big moves to secure its position in the Metaverse. Since it was estimated in a report by Wall Street Journal that over 100 employees have been moved from Microsoft’s augmented reality team to the Metaverse team.
This is truly exciting news for both gamers and for Metaverse enthusiasts. The Metaverse has the potential to be the next big thing that will alter our lives in the long run. Microsoft spending $69 shows how eager the company is to have a large section of this pie called the Metaverse.
* We hope this information will help you in your investment process, but this is not investment advice. Every investment carries risk, especially in this industry, so DYOR before making a decision.