Microsoft to buy Activision Blizzard in an all-cash deal of nearly $70 billion!
Microsoft to buy Activision Blizzard, the American game-making company, in a deal of $68.7 billion, making a massive gaming industry contract in history and staking its claim to a virtual future.
“Breaking News: Microsoft agreed to buy the video game maker Activision Blizzard for $68.7 billion, its largest takeover ever and a big bet on the metaverse”, The New York Times Tweeted.
On Tuesday, Microsoft announced that the company is acquiring the “Call of Duty” makers in an all-cash deal. The massive $68.7 billion deal will bolster the company in the thriving video gaming industry where the companies like Tencent and Sony compete.
The deal also represents Microsoft’s bet on the “Metaverse” – an already being used gaming concept where you can eat, work, socialize and play in a virtual universe.
“Gaming is the most dynamic and exciting category in entertainment across all platforms today and will play a key role in the development of metaverse platforms,” said Satya Nadella, the CEO of Microsoft.
Microsoft, one of the leading tech giants, has been blessing the corporate world largely with its cloud computing Azure and Outlook software, is offering each share for $95 – 45 percent premium to Activision Blizzard’s stock closed on Friday.
Activision Blizzard’s stocks were last up to $82.10 per share, still a swift discount to the actual offer. This raises concerns for many as the deal could get caught in authorities’ crosshairs.
“Microsoft has so far avoided the type of scrutiny faced by Google and Facebook but this deal, which would make it the world’s third-largest gaming company, will put the Xbox maker on lawmakers’ radars”, stated Andre Barlow who works for Doyle, Barlow & Mazard PLLC.
“Microsoft is already big in gaming,” he added.
However, as per an insider’s reporting, the tech giant has agreed to pay $3 billion as break-fee if the contract terminates, suggesting the firm is confident of acquiring antitrust approval.
The tech firm’s stocks were last down by 1.9 percent.
The billion-dollar deal came right at the weak time of the “Candy Crush” and “Overwatch” games maker, as the company recorded a plunge in stocks by 37 percent or more following the sexual harassment and misbehavior with the employees’ controversies. The company last reached a peak in the stock market in 2021.
The firm is still dealing with the allegations as it has laid off more than 18 employees, the company revealed, in addressing on Monday.