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Microsoft just bought Activision Blizzard for $69 billion

2023-10-13 18:54 by
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After months of extensive global regulatory obstacles, Microsoft closed the monumental acquisition of Activision-Blizzard, valued at $69 billion, on Friday.

The deal is Microsoft's largest acquisition ever, far in excess of the $26 billion Microsoft paid to acquire LinkedIn in 2016 and the $7.5 billion it paid to acquire Bethesda in 2021. This is Microsoft's biggest-ever push into gaming, too, and the company said at the original announcement of this megadeal that it will now be the "third-largest gaming company by revenue, behind Tencent and Sony."

While $69 billion is a massive chunk of money, Activision-Blizzard brings lucrative franchises such as Call of Duty, which alone has generated over $30 billion in revenue. At the same time, Microsoft's Xbox has robust services like the Xbox Game Pass subscription, contributing significantly to its revenue stream. This union is expected to bolster the merged company's market position, driving substantial revenue through a rich portfolio of games and services.

Microsoft will now add more than nine game studios from the Blizzard side alone to its Xbox Game Studios, alongside games studios in more than 11 locations for the mobile gaming King side of the acquisition. Microsoft has also transformed into a publishing powerhouse after the acquisition, with more than 8,500 Activision employees now joining Microsoft.

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