One of the world's biggest technology giants, Microsoft has announced that it will be buying gaming company, Activision Blizzard for a whopping $68.7 billion in an all-cash deal. Once closed, it will be the biggest gaming deal in history as the global tech behemoths increase their take on the virtual future.
Microsoft's largest-ever acquisition revealed on Tuesday, would enhance its firepower in the expanding video game market, where it competes with leaders Tencent and Sony. It also represents the American multinational's gamble on the "metaverse," or virtual online worlds where people may work, play, and socialize, as many of its greatest competitors have done.
Microsoft Chief Executive Satya Nadella 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." The $95 per share offer from Microsoft marks a 45 percent premium over Activision's Friday close. Activision's stock was trading at $83.35 in early trading. Its stock has dropped more than 37% since hitting a record high last year, following allegations of sexual harassment and misbehaviour by numerous top executives.
Since July, the firm has dismissed or pushed out more than three dozen employees and disciplined another 40, according to the corporation, which claimed on Monday it has fired or pushed out more than three dozen employees and disciplined another 40. Following the arrangement, Activision's CEO Bobby Kotick, who stated Microsoft approached him about a prospective takeover, would continue to lead the company.
Global Gaming Market
According to research firm Mordor Intelligence, the worldwide gaming business was valued at $173.70 billion in 2021 and is predicted to reach $314.40 billion by 2027. As one of the main three console manufacturers, Microsoft already has a strong foothold in the gaming market. In recent years, it has made large investments, including multibillion-dollar transactions with "Minecraft" creator Mojang Studios and Zenimax.