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Take stock of Microsoft's top ten acquisitions: 3 of the more than 10 billion US dollars Nokia is not in the top 5

via:太平洋电脑网     time:2022/1/21 8:03:36     readed:153

I believe that everyone has paid attention to the news that Microsoft has acquired Activision Blizzard for nearly $70 billion. It is understood that Microsoft will acquire game giant Activision Blizzard for $68.7 billion.Assuming the deal goes smoothly, it is likely to be subject to some scrutiny from the FTC's revised changes, which will undoubtedly change the face of games and emerging technologies such as metaversities.

This is the most expensive acquisition Microsoft has ever made, so how does the acquisition of Activision Blizzard compare to Microsoft's other acquisitions? We can take a look at the table below.

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It can be seen that the funds used by Microsoft's acquisition of Activision Blizzard are indeed very amazing. If you add up the acquisitions on the list over the past decade (squeezing Skype in 2011), it adds up to $147.8 billion. Of that $144.8 billion spent, Activision Blizzard accounted for a huge share of 46 percent.

The fact that all but two of the first ten acquisitions took place after 2011 suggests that Microsoft is using its growing heap of cash rather than sitting still.

The cost performance of Microsoft's acquisition of Activision Blizzard is not yet known.But Microsoft's acquisition of Mojang, the team behind Minecraft, for only $2.5 billion in 2014, is clearly a bargain compared to similar companies. While many questioned Microsoft's value at the time (and predicted the company would ruin the franchise), Minecraft has actually become one of the most successful games of all time. Currently, Minecraft has 141 million monthly active users (up from 40 million in 2016) and more than $350 million in book revenue.

Of course, not all of Microsoft's big acquisitions have been so successful.For example, Nokia's mobile smartphone division was acquired, integrated, and then in 2017, Nokia was strategically abandoned along with Windows Phone.

Since Nadella became CEO of Microsoft in 2015, Microsoft has spent a lot of money on acquisitions. We've narrowed the scope to Microsoft's big acquisitions since Nadella took office in 2015, including:

Activision Blizzard (to be determined)

LinkedIn

Nuance (to be determined)

ZeniMax Media

GitHub

Pending means that the acquisition is still not completely settled, and may encounter obstacles such as anti-monopoly investigations. But it is clear that Microsoft, under Nadella's leadership, is making a very aggressive acquisition.

In these acquisitions, although LinkedIn is often the focus of jokes, Microsoft is laughing more happily on the way. This professional social network now generates more than $10 billion in revenue each year. Considering that Microsoft acquired it for $26 billion more than five years ago, the segment is undoubtedly profitable and continues to grow (revenue in July 2021 increased by 21% year-on-year).

GitHub, which is critical to open source software development, is said to have added 16 million new users in 2021 alone, bringing its total number of users to 73 million. It is predicted that by 2025, GitHub will have more than 100 million users.

For objects like ZeniMax, there are also many advantages for Microsoft, ZeniMax has Bethesda Softworks, id Software, Arkane Studios, Machine Games, Tango, and game IP such as DOOM, Elder Scrolls, Fallout, and Quake. When combined with Mojang and Activision Blizzard (assuming the acquisition is approved), Microsoft certainly gets a great opportunity to continue to evolve the Xbox Game Pass Service (XGP).

All in all, Activision Blizzard is a massive acquisition by Microsoft. Apparently, the company made gaming a top priority, and even Phil Spencer was named CEO of Microsoft's games division.

Microsoft is burning money at an even faster rate than it did a decade ago, but as of September 2021, the company is sitting on $130.615 billion. In other words, while the acquisition will cost a lot, Microsoft can still easily afford it. Now, let's wait and see if the deal is approved.

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