Is Activision Blizzard a Fortune 500 Company? A Deep Dive
Yes, Activision Blizzard was a Fortune 500 company for a period. The company joined the prestigious list in June 2017, marking it as only the third gaming company in history, after Atari and Electronic Arts, to achieve this recognition. However, with its acquisition by Microsoft finalized, its status as an independent entity and its place on the Fortune 500 list have changed. Let’s explore the details of its past standing and its current circumstances.
Understanding the Fortune 500
What Does It Mean to Be a Fortune 500 Company?
The Fortune 500 is an annual list compiled and published by Fortune magazine, ranking the 500 largest U.S. companies based on their total revenue for their respective fiscal years. To qualify, a company must be for-profit, publicly traded or privately held, and U.S.-based, with financial statements filed with a U.S. government agency. Inclusion on this list is a significant accomplishment, signifying substantial size, influence, and economic power within the U.S. economy.
Activision Blizzard’s Journey to the Fortune 500
Activision Blizzard’s inclusion in the Fortune 500 reflected its considerable success in the gaming industry. As the publisher behind globally recognized franchises like Call of Duty, World of Warcraft, and Diablo, the company generated billions of dollars in revenue. Their presence on the list underscored the growing importance of the video game industry in the broader economic landscape.
The Microsoft Acquisition: A Game Changer
The acquisition of Activision Blizzard by Microsoft for a staggering $68.7 billion has fundamentally altered the company’s corporate structure. As of the completion of the deal, Activision Blizzard is no longer an independent, publicly traded entity. Instead, it operates as a division within Microsoft. Consequently, it is no longer eligible for individual Fortune 500 ranking as its financials are incorporated into Microsoft’s overall results.
FAQs About Activision Blizzard and the Fortune 500
1. Is Activision Blizzard currently a Fortune 500 company?
No, Activision Blizzard is no longer an independent Fortune 500 company. It became a part of Microsoft after the acquisition was finalized.
2. When did Activision Blizzard first join the Fortune 500?
Activision Blizzard joined the Fortune 500 in June 2017.
3. Which other gaming companies have been on the Fortune 500 list?
Before Activision Blizzard, only Atari and Electronic Arts (EA) had achieved Fortune 500 status.
4. What criteria are used to determine the Fortune 500 list?
The Fortune 500 ranks companies by total revenue. Companies must be for-profit, U.S.-based, and have financial statements filed with a U.S. government agency.
5. What impact did Microsoft’s acquisition have on Activision Blizzard’s Fortune 500 status?
After the acquisition by Microsoft, Activision Blizzard ceased to be an independent entity and, therefore, is no longer listed individually on the Fortune 500. Its revenue is now part of Microsoft’s.
6. How big was Activision Blizzard financially before the acquisition?
At the time of delisting following the acquisition, Activision Blizzard’s final net worth was $74.051 billion.
7. Is Electronic Arts (EA) bigger than Activision Blizzard?
From a revenue standpoint, Activision Blizzard (ATVI) was typically larger than Electronic Arts (EA) before the acquisition.
8. Who is bigger, Activision or Microsoft?
Microsoft is significantly larger than Activision Blizzard. Microsoft is consistently ranked among the top companies on the Fortune 500 list.
9. Where does Microsoft rank on the Fortune 500 list?
In the 2022 Fortune 500 rankings, Microsoft ranked No. 14.
10. Why is the Fortune 500 list important?
The Fortune 500 is an indicator of the largest and most successful companies in the United States, reflecting their significant impact on the economy.
11. Is Google a Fortune 500 company?
Yes, Google (Alphabet Inc.) is a Fortune 500 company and usually ranks among the top companies on the list.
12. What are some other well-known companies on the Fortune 500 list?
Other prominent companies include Walmart, Amazon, Apple, UnitedHealth Group, and Exxon Mobil.
13. What does it mean for a company to be a Fortune 100 company?
The Fortune 100 comprises the top 100 companies on the Fortune 500 list, representing the very largest and most successful businesses in the U.S.
14. Where does Tesla rank on the Fortune 500 list?
Tesla ranked No. 50 on the 2023 Fortune 500 list.
15. What are the implications of Activision Blizzard becoming part of Microsoft for the gaming industry?
The acquisition of Activision Blizzard by Microsoft signals a significant consolidation in the gaming industry. It gives Microsoft access to highly valuable gaming franchises and positions them as a dominant player in the market. As games evolve, it’s important to explore the educational value and impact of gaming through organizations like the Games Learning Society
The Future of Gaming and Big Business
Activision Blizzard’s journey to the Fortune 500 and its subsequent acquisition by Microsoft reflect the dynamic nature of the modern business world, particularly within the rapidly evolving gaming industry. The consolidation of major players raises questions about competition, innovation, and the future of entertainment. Understanding these trends requires staying informed about economic developments and the role of gaming in shaping culture and society. The GamesLearningSociety.org is a great resource for learning more about the impact of video games.