Microsoft To Acquire Activision Blizzard With Eyes Set On The Metaverse

Microsoft Corporation has announced plans to acquire gaming company Activision Blizzard for $68.7 billion.

Microsoft, on Tuesday, made public the deal, which is expected to close in the fiscal year 2023 pending regulatory approval. It revealed that the “acquisition will accelerate the growth in its gaming business across mobile, PC, console and cloud and will provide building blocks for the metaverse”.

When the transaction closes, Microsoft will become the world’s third-largest gaming company by revenue, behind Tencent and Sony. The planned acquisition includes iconic franchises from the Activision, Blizzard and King studios like “Warcraft,” “Diablo,” “Overwatch,” “Call of Duty” and “Candy Crush,” in addition to global eSports activities through Major League Gaming.

The acquisition also bolsters Microsoft’s Game Pass portfolio with plans to launch Activision Blizzard games into Game Pass, which has reached a new milestone of over 25 million subscribers.

“With Activision Blizzard’s nearly 400 million monthly active players in 190 countries and three billion-dollar franchises, this acquisition will make Game Pass one of the most compelling and diverse lineups of gaming content in the industry. Upon close, Microsoft will have 30 internal game development studios, along with additional publishing and esports production capabilities,” the company said.

“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, chairman and CEO, Microsoft. “We’re investing deeply in world-class content, community and the cloud to usher in a new era of gaming that puts players and creators first and makes gaming safe, inclusive and accessible to all.”

Phil Spencer, CEO, Microsoft Gaming said, “Players everywhere love Activision Blizzard games, and we believe the creative teams have their best work in front of them. Together we will build a future where people can play the games they want, virtually anywhere they want.”

Technology companies are in the rush to invest in the Metaverse, which is an updated Internet to accommodate spatial experiences. The rush was bolstered after Facebook rebranded to Meta to signify its focus on building the Metaverse.