What happened to Xbox and Activision?
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Microsoft has successfully completed its $68.7 billion acquisition of Activision Blizzard, the maker of popular video games like Call of Duty and Candy Crush, after a long battle with regulators in the UK and US. This landmark deal has catapulted Microsoft into a leading spot in the $175 billion gaming industry, giving it control over a vast portfolio of gaming franchises and studios.
Background and Context
The acquisition was first announced in 2022 and has since faced intense scrutiny from regulators and rivals, who expressed concerns over the potential impact on the gaming industry. However, after restructuring the deal to address these concerns, Microsoft has ultimately emerged victorious, with the UK’s Competition and Markets Authority (CMA) and US federal court giving the deal the green light.
The Deal and Its Implications
The acquisition of Activision Blizzard by Microsoft is a significant milestone in the gaming industry, marking one of the largest deals in the sector’s history. As a result of the deal, Xbox now owns a vast portfolio of gaming franchises, including Call of Duty, Overwatch, Diablo, Warcraft, Starcraft, Guitar Hero, Crash Bandicoot, and Spyro.
Frequently Asked Questions
General Questions
- Is Xbox and Activision deal going through?: Yes, Microsoft has successfully completed its $68.7 billion acquisition of Activision Blizzard.
- Who won the Xbox Activision deal?: Microsoft has won the deal, completing its acquisition of Activision Blizzard after a long battle with regulators.
- Has Activision been bought by Xbox?: Yes, Microsoft has completed its $69bn (£57bn) deal to buy Activision Blizzard.
Financial Questions
- What happens to my Activision stock when Microsoft buys it?: Each of your Activision Blizzard shares will be exchanged for $95.00 per share, and the cash will be deposited into your account.
- How will this impact my holdings?: You will no longer own an interest in Activision Blizzard or its acquirer, Microsoft.
- How much did Xbox pay for cod?: Microsoft paid $69 billion to buy Activision Blizzard, the maker of Call of Duty.
Gaming Questions
- Did Xbox buy Call of Duty?: Yes, Microsoft has completed its $69bn (£57bn) deal to buy Activision Blizzard, the maker of Call of Duty.
- Is Call of Duty coming off Xbox?: No, Call of Duty will remain on both Xbox and Sony’s PlayStation for at least the next 10 years.
- Who owns the new Call of Duty?: Call of Duty: Modern Warfare II is developed by Infinity Ward and published by Activision, which is now a wholly-owned subsidiary of Microsoft.
Ownership and Structure
- Who owns Xbox?: Microsoft, which owns the Xbox gaming system, has closed its $69 billion deal to buy game-maker Activision Blizzard.
- Is Blizzard now Microsoft?: Yes, Activision Blizzard is now a wholly-owned subsidiary of Microsoft.
- What does Xbox own now?: Xbox now officially owns Activision Blizzard, as well as prestigious franchises like Call of Duty, Overwatch, and Diablo.
Future Prospects
- Why Microsoft buys Activision?: Microsoft acquired Activision Blizzard to bolster its gaming credentials and gain control over valuable gaming IP.
- What is Microsoft doing with cod?: Microsoft will control games like Call of Duty, which will provide the firm with huge revenues and help preserve competitive prices in the gaming industry.
- Is Xbox still making money?: Yes, the Xbox games business is profitable, with Microsoft’s games division making $15.56 billion in revenues in 2022, driven primarily by content and services.