Is Activision Blizzard Owned by Microsoft? The Definitive Answer and FAQs
Yes, Activision Blizzard is now a wholly-owned subsidiary of Microsoft. This monumental acquisition, finalized on October 13, 2023, marks a significant shift in the gaming industry and represents one of the largest technology deals in history. After nearly two years of regulatory scrutiny and navigating various hurdles, Microsoft’s $68.7 billion takeover of the gaming giant has been successfully completed. This means that beloved franchises like Call of Duty, World of Warcraft, Overwatch, and Diablo are now under the Microsoft umbrella. This article delves into the details of this acquisition and answers crucial questions surrounding it.
The Acquisition: A Deep Dive
Microsoft’s intent to acquire Activision Blizzard was initially announced in January 2022. The deal, valued at approximately $68.7 billion (or $69 billion as it is widely quoted), faced intense regulatory challenges from various global authorities. These challenges centered around concerns about market dominance and potential anti-competitive practices. The acquisition was not without its drama. It had to go through several stages of approval. There were initially extended deadlines, and there was a lot of uncertainty if the merger would ever happen. However, Microsoft successfully navigated these issues and finally completed the merger on October 13, 2023.
The closure of this deal means that Activision Blizzard now operates as a sibling division to Xbox Game Studios and ZeniMax Media within the Microsoft Gaming business unit. This strategic acquisition gives Microsoft significant access to a vast library of popular game titles and a massive player base, positioning them as a major player in the gaming world.
What Does This Mean for Gamers?
The most immediate implication for gamers is that some of Activision Blizzard’s popular titles could eventually find their way to Xbox Game Pass, Microsoft’s subscription service. This would give subscribers access to a plethora of highly anticipated games. Additionally, this acquisition allows Microsoft to diversify its gaming portfolio, targeting both console and mobile platforms.
While some had concerns over exclusivity, Microsoft has committed to keeping popular games like Call of Duty available on PlayStation, ensuring that gamers on all platforms have the opportunity to enjoy these titles. This commitment underscores Microsoft’s focus on expanding its content reach without restricting player access.
Frequently Asked Questions (FAQs) About the Microsoft-Activision Blizzard Acquisition
Here are some frequently asked questions designed to further clarify details of this important acquisition:
1. Did Microsoft buy Blizzard specifically?
Technically, Microsoft did not specifically buy just Blizzard. They acquired the entire Activision Blizzard company. This merger brings both Activision and Blizzard brands under the Microsoft umbrella. It’s worth remembering that Activision and Blizzard merged in 2008 to become Activision Blizzard.
2. Why did Microsoft want to acquire Activision Blizzard?
Microsoft’s primary motivation was to expand its content offerings and strengthen its position in the gaming industry. Acquiring Activision Blizzard provided Microsoft with access to a wide range of popular game franchises, a large player base, and expertise in game development. This also enhances the value of their Xbox Game Pass subscription service.
3. How much did Microsoft pay for Activision Blizzard?
The final acquisition price was approximately $68.7 billion (or $69 Billion), making it one of the largest technology acquisitions in history. The deal was finalized on October 13, 2023.
4. Are Call of Duty and other Activision Blizzard titles now exclusive to Xbox?
No, Microsoft has publicly committed to keeping Call of Duty and other popular titles available on other platforms, including PlayStation. This strategy ensures that existing players can continue to enjoy these games, while also leveraging cross-platform compatibility where possible.
5. Did Sony approve of the acquisition?
Although Sony had initial concerns and regulatory opposition, they have ultimately signed a binding agreement with Microsoft to keep Call of Duty on PlayStation. This agreement alleviates concerns that Microsoft may monopolize their key franchises.
6. What is the impact of this deal on Bobby Kotick?
As part of the acquisition, Bobby Kotick stepped down as the CEO of Activision Blizzard. With the completion of the deal he ceased his role with the company.
7. What happened to the original deadline for the acquisition?
The original deadline for the acquisition was July 2023. Due to various regulatory hurdles and review processes, the deadline had to be extended to October 18, 2023. The deal closed on the 13th, just before the revised deadline.
8. Was this acquisition the largest technology deal ever?
The Microsoft-Activision Blizzard acquisition is indeed one of the largest tech deals in history, valued at approximately $69 billion. While not the absolute largest ever, it’s a monumental acquisition in the gaming sector that rivals the biggest.
9. What regulatory bodies were involved in reviewing this deal?
The acquisition faced scrutiny from various regulatory bodies globally. These included the Federal Trade Commission (FTC) in the US, the Competition and Markets Authority (CMA) in the UK, and the European Commission in Europe. These agencies reviewed the deal for any potential anti-competitive impacts and market concentration concerns.
10. Is Activision Blizzard now a part of Xbox?
Not exactly. While Activision Blizzard is now owned by Microsoft, it operates as a sibling division within the Microsoft Gaming unit, alongside Xbox Game Studios and ZeniMax Media.
11. What was the controversy surrounding Activision before the acquisition?
Activision faced significant controversy before the acquisition due to a lawsuit filed by the state of California in July 2021, alleging a culture of “constant sexual harassment” and discrimination within the company. This controversy played a part in the regulatory scrutiny faced by the acquisition.
12. Who owns Microsoft?
The ownership of Microsoft (MSFT) stock is a mix of institutional, retail, and individual investors. Approximately 41.23% is owned by Institutional Investors, 2.97% by Insiders, and 55.80% by Public Companies and Individual Investors.
13. Who owns Xbox?
Xbox is a video gaming brand created and owned by Microsoft.
14. Will Activision Blizzard games be available on Game Pass?
Microsoft has indicated that its goal with the acquisition is to add more of the Activision Blizzard catalogue to Xbox Game Pass, which would dramatically increase the value of the subscription service. The specific games and timing of their availability will be announced in the future.
15. Did Activision buy Blizzard initially?
Yes, in 2008, Activision merged with Blizzard Entertainment to form Activision Blizzard to leverage Blizzard’s intellectual property. Before that, Blizzard was under the umbrella of Vivendi. Activision purchased them from Vivendi.
Conclusion
The acquisition of Activision Blizzard by Microsoft is a landmark event in the gaming industry with significant implications for both companies and the broader gaming community. This deal solidifies Microsoft’s position as a key player in gaming and provides them access to highly successful franchises. While the acquisition faced numerous hurdles, its successful completion marks the beginning of a new chapter for Activision Blizzard under Microsoft’s ownership. It is expected to bring fresh perspectives to the industry while also changing the landscapes of content available to consumers and players.