Microsoft has now formally acquired Activision Blizzard, via the biggest company buyout in video games industry history.
Today’s long-awaited closure of the deal brings to an end a process that has dragged on through almost two years of regulatory approvals and legal wrangling. Finally, however, it is done – hours after the UK ultimately gave the deal a green light.
Microsoft now owns Activision, including the world’s biggest first-person shooter franchise Call of Duty, plus the rights to Spyro, Skylanders, and Guitar Hero.
Microsoft also now owns Blizzard, home to World of Warcraft, and the maker of the Diablo series, Overwatch, StarCraft and Hearthstone.
And perhaps most importantly for Microsoft – and most lucratively – it now owns Activision Blizzard’s giant mobile division King. Its mobile game smash hit Candy Crush Saga has raked in more than $20bn alone.
For Activision Blizzard staff – all 17,000 of them worldwide – the acquisition marks a new chapter in the company’s history. But, for now at least, the firm remains headed by controversial boss Bobby Kotick, who has repeatedly come under fire as Activision Blizzard struggled to reckon with a wave of harassment and misconduct allegations over the past couple of years.
“As one team, we’ll learn, innovate, and continue to deliver on our promise to bring the joy and community of gaming to more people,” Xbox boss Phil Spencer said today in a blog post on the buyout. “We’ll do this in a culture that strives to empower everyone to do their best work, where all people are welcome, and is centered on our ongoing commitment of Gaming for Everyone. We are intentional about inclusion in everything we do on Xbox – from our team to the products we make and the stories we tell, to the way our players interact and engage as a wider gaming community.”
Microsoft first signaled its intent to acquire Activision Blizzard in January 2022, for the enormous sum of $68.7bn. This figure dwarfs that of any other video games industry buyout – the closest being Grand Theft Auto publisher Take-Two’s 2022 acquisition of mobile giant Zynga for $12.7bn.
It’s the latest – and by far the biggest – in a string of acquisitions for Microsoft, after it bought Bethesda parent company ZeniMax for $8.1bn in 2020. This followed a flurry of buyouts through 2018 and 2019 that saw Microsoft snaffle up Ninja Theory, Undead labs, Compulsion Games, Playground Games, InXile Entertainment, Obsidian and Double Fine.
Microsoft has spent billions on bolstering its first-party video game output – far more than PlayStation – over recent years, as part of a growing trend of consolidation across the industry. And Sony has also been a part of this, buying up Bungie in 2022 for $3.7bn.
As expected, the deal’s completion has not prompted an immediate wave of Activision Blizzard games appearing on Xbox Game Pass. Activision itself previously warned that this would take time, with newer titles not expected to appear until 2024.
“Today we start the work to bring beloved Activision, Blizzard, and King franchises to Game Pass and other platforms,” Spencer said today. “We’ll share more about when you can expect to play in the coming months. We know you’re excited – and we are too.
“For the millions of fans who love Activision, Blizzard, and King games, we want you to know that today is a good day to play. You are the heart and soul of these franchises, and we are honored to have you as part of our community. Whether you play on Xbox, PlayStation, Nintendo, PC or mobile, you are welcome here – and will remain welcome, even if Xbox isn’t where you play your favorite franchise. Because when everyone plays, we all win. We believe our news today will unlock a world of possibilities for more ways to play.”
More to follow.
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