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Behind Microsoft's nearly $70 billion acquisition of Activision Blizzard: $130 billion cash pile

via:快科技     time:2022/1/20 13:08:03     readed:261

Microsoft to buy Activision Blizzard for nearly $70 billion

Microsoft's $68.7 billion acquisition of Activision Blizzard is not only the most expensive acquisition in the gaming industry, but also the largest in the entire technology sector, following Dell's $67 billion acquisition of EMC in 2016.

Amount not only created the world record, the acquisition of surprises the world and one more thing - Microsoft's acquisition of activision blizzard is all cash transactions, which is rare, usually such huge deals will adopt a large number of stock + a small amount of cash, because take out nearly $70 billion cash acquisition is very test of company operation.


But that's not a problem at all for Microsoft, because Microsoft is not short of money, according to the company's financial statements,With $130.3 billion in cash, cash equivalents and short-term investments as of June 30, 2021, Microsoft has more than enough cash to buy Activision Blizzard and have about half that cash left over.

Not only that, but Microsoft is incredibly profitable each year, with revenue of $168.1 billion in fiscal 2021, up 18% from a year earlier,Net income was $61.2 billion,That's up 28 percent year on year.

Even without the cash, Microsoft will only need 14 months to pay back the nearly $70 billion it spent on Activision Blizzard, and the deal won't close until Next June, so there's no pressure on Microsoft to make that money back in that time.

The deal is worth so much,Microsoft alone is paying $3 billion in damages-- Activision Blizzard will receive a $3 billion breakup fee if the deal doesn't close due to review or other reasons.

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