Microsoft plans to buy Activision Blizzard for more than 400 billion yuan
Phoenix net science and technology news Beijing time on January 19, Microsoft plans to spend $68.7 billion (about RMB 436.1 billion yuan) to acquire Activision Blizzard, intended to take the express yuan universe.
In its largest-ever acquisition, Microsoft will pay $95 a share for Activision Blizzard's games portfolio, expanding its portfolio for the Xbox console and expanding into the fast-growing mobile and meta-universe markets to become the world's third-largest gaming company. The deal also suits Microsoft CEO Satya Middot; Satya Nadella's strategy: Focus on content, community and cloud services software.
Before the deal closed, Activision Blizzard CEO Bobby Middot said, according to a person familiar with the matter. Bobby Kotick will continue in his role. Activision Blizzard will be replaced by Phil & Middot, who was promoted to CEO of Microsoft's games business; Phil Spencer is in charge.
Activision Blizzard will also help Microsoft better compete with SONY's PlayStation business. Activision Blizzard owes much of its success to Xbox Live, Microsoft's online platform. Activision Blizzard supports most of its games on the Xbox.
In a memo to employees, Nadella said, "The games business has been important to the company since its inception. Gaming is currently the largest and fastest growing form of entertainment and will play an important role in the evolution of metasurtical platforms as the physical and digital worlds converge."
Buying Activision Blizzard would also pose a host of legal and regulatory issues for Microsoft. Activision Blizzard has faced controversy since a California institution filed a gender discrimination lawsuit last year detailing its frat culture. The deal is also likely to face heavy regulation in the US. The deal could also face antitrust scrutiny in China.
Wedbush Securities analysts Dan & Middot; "The Activision Blizzard acquisition will boost Microsoft's gaming business into the metasverse, where gaming will be the first segment to monetize the metasverse platform," Said Dan Ives, chief executive of Activision Blizzard, in an investment note. "Given the intense pressure on Activision Blizzard's stock price over the past few months, Microsoft sees this acquisition as an opportunity to acquire unique assets to drive its consumer business."
Microsoft will continue to make some Activision Blizzard games available on SONY, but some will be Xbox exclusive, according to a source familiar with Microsoft's thinking. "I can only say to activision Blizzard customers who play games on SONY: We have no intention of pulling support from SONY," Mr. Spencer said in an interview.
Microsoft is also banking on mobile gaming. Mobile games are the fastest growing gaming business and one of Microsoft's weak spots. Earlier this month take-Two Interactive Software struck an $11 billion deal with Zynga to enter the mobile game business.
Microsoft said the acquisition of Activision Blizzard would enable gamers to play blockbuster games such as Halo and Warcraft "wherever they want" and that Activision's mobile games business represented a "huge opportunity." (Writer/Shuangye)
More first-hand news, welcome to download phoenix news client to subscribe ifeng.com technology. For in-depth coverage, search "iFeng Technology" on wechat.