The Final Score: How Much Did Microsoft Pay Per Share for Activision Blizzard?

Microsoft ultimately paid $95 per share for Activision Blizzard as part of its landmark acquisition deal. This price was a significant premium over Activision Blizzard’s trading price before the acquisition announcement, reflecting Microsoft’s eagerness to secure the company’s valuable intellectual property and gaming talent.

The Acquisition Saga: A Long and Winding Road

The journey to this final price was anything but straightforward. The acquisition, initially announced in early 2022, faced intense scrutiny from regulators worldwide, concerned about its potential impact on competition in the gaming industry. This scrutiny led to numerous delays, potential roadblocks, and even moments where the deal appeared to be on the verge of collapse. However, Microsoft persevered, navigating the complex regulatory landscape and ultimately securing the necessary approvals to close the acquisition on October 13, 2023.

Key Milestones in the Acquisition Process:

• Initial Announcement: Microsoft announces its intent to acquire Activision Blizzard for $68.7 billion, or $95 per share.
• Regulatory Scrutiny: Antitrust regulators in the U.S., Europe, and the UK launch investigations into the deal.
• FTC Lawsuit: The U.S. Federal Trade Commission (FTC) files a lawsuit to block the acquisition, arguing it would harm competition.
• UK CMA Block: The UK’s Competition and Markets Authority (CMA) initially blocks the deal, citing concerns about cloud gaming.
• Revised Deal: Microsoft proposes a revised deal, including concessions to address the CMA’s concerns.
• Regulatory Approval: The European Commission and the UK CMA approve the revised deal.
• Acquisition Completion: Microsoft closes the acquisition of Activision Blizzard on October 13, 2023.

What Made Activision Blizzard So Valuable?

Activision Blizzard wasn’t just any gaming company. It was a powerhouse, home to some of the most iconic and lucrative franchises in the industry, including:

• Call of Duty: A global phenomenon and one of the best-selling video game franchises of all time.
• World of Warcraft: A massively multiplayer online role-playing game (MMORPG) that has captivated players for decades.
• Diablo: A dark fantasy action role-playing game known for its addictive gameplay and compelling lore.
• Candy Crush Saga: A mobile gaming sensation that has generated billions of dollars in revenue.

Acquiring these franchises and the talented teams behind them was a strategic move for Microsoft, bolstering its position in the gaming market and providing a strong foundation for future growth. The acquisition significantly expands Microsoft’s content library for its Xbox Game Pass subscription service, making it even more attractive to gamers.

Frequently Asked Questions (FAQs) about the Microsoft-Activision Blizzard Acquisition

Here are some frequently asked questions that delve deeper into the details of the acquisition and its implications:

1. Why did Microsoft want to buy Activision Blizzard? Microsoft’s primary goal was to strengthen its position in the gaming industry, especially its Xbox ecosystem. Acquiring Activision Blizzard provides access to hugely popular franchises, talented development teams, and a vast library of games to bolster Xbox Game Pass.

2. How much was the total value of the Microsoft Activision deal? The total value of the deal was $68.7 billion.

3. What were the main concerns raised by regulators regarding the acquisition? Regulators were primarily concerned that the acquisition would give Microsoft an unfair advantage in the gaming market, potentially stifling competition and harming consumers. Concerns centered around cloud gaming, the availability of Activision Blizzard’s games on competing platforms (like PlayStation), and the potential for Microsoft to bundle games to its advantage.

4. How did Microsoft address the UK CMA’s concerns about cloud gaming? Microsoft addressed the CMA’s concerns by agreeing to sell cloud gaming rights for Activision Blizzard games in the UK to Ubisoft. This allowed the CMA to approve the deal.

5. Will Call of Duty become an Xbox exclusive? Microsoft has stated that it intends to keep Call of Duty available on PlayStation. The exact terms of the deal are complex and may change over time, but for now, Call of Duty will remain a multi-platform title.

6. What happens to Activision Blizzard employees after the acquisition? Microsoft has stated that it plans to retain Activision Blizzard employees and integrate them into its Microsoft Gaming division. While some restructuring is possible, the overall goal is to leverage the talent and expertise of the Activision Blizzard team.

7. Will Activision Blizzard games be added to Xbox Game Pass? Yes, one of the main benefits for Microsoft is adding Activision Blizzard titles to Xbox Game Pass. Many Activision Blizzard games are already available on Game Pass, and more will be added in the future.

8. What is Microsoft’s vision for the future of gaming? Microsoft envisions a future where gaming is accessible to everyone, regardless of platform or device. The acquisition of Activision Blizzard is a key step in achieving this vision, allowing Microsoft to offer a diverse and compelling range of gaming experiences across its Xbox consoles, PC, and cloud gaming services.

9. How will the acquisition impact the gaming industry as a whole? The acquisition is expected to have a significant impact on the gaming industry, potentially leading to more consolidation and competition. It also signals a growing emphasis on cloud gaming and subscription services.

10. **Is there a connection with *Games Learning Society* and the Microsoft Activision deal?** While the Games Learning Society doesn’t directly tie to this business deal, this merger reinforces the significance of video games as a substantial cultural and economic force, mirroring our organization’s mission to explore and advance the educational aspects of games. For more information about the educational potential of video games, visit our website at https://www.gameslearningsociety.org/.

11. What is Ubisoft’s role in the Microsoft Activision Blizzard acquisition? Ubisoft secured the cloud streaming rights for Activision Blizzard games in the UK. This was part of Microsoft’s agreement with the CMA to address concerns about cloud gaming competition.

12. Will Activision Blizzard games become exclusive to the Xbox ecosystem after some years? Microsoft has pledged to keep Call of Duty available on PlayStation, and it is likely that other key franchises will remain multi-platform for the foreseeable future. However, future games may be exclusive to the Xbox ecosystem.

13. What are the potential risks associated with such a large acquisition? Integrating Activision Blizzard into Microsoft’s existing structure poses significant challenges. Potential risks include cultural clashes, integration difficulties, and regulatory hurdles. Microsoft will need to carefully manage these risks to ensure the acquisition is successful.

14. How might this acquisition impact the market share of PlayStation? The acquisition could negatively impact PlayStation’s market share, particularly if Activision Blizzard games become exclusive or if Microsoft bundles them with Xbox Game Pass. However, PlayStation remains a strong competitor with a large and loyal user base.

15. What are the potential benefits for gamers as a result of the Microsoft Activision Blizzard acquisition? Gamers could benefit from the acquisition through increased investment in game development, expanded access to games through Xbox Game Pass, and potentially lower prices. However, there is also a risk of less competition and innovation if Microsoft becomes too dominant in the gaming market.

The Future of Gaming: Microsoft’s Next Level

The acquisition of Activision Blizzard marks a significant shift in the gaming landscape. By securing access to iconic franchises and a wealth of talent, Microsoft is positioning itself to be a leader in the evolving world of gaming. Only time will tell how this acquisition ultimately plays out, but one thing is certain: the gaming industry will never be quite the same. Microsoft’s journey is a great example of how knowledge gained in places such as the GamesLearningSociety.org can contribute to the games world.