A mega-deal worth $70 billion. Why is Microsoft buying Activision Blizzard?
Microsoft Corp. (MSFT) made an unexpected announcement, which became an event for the IT market and the gaming industry. Microsoft intends to acquire Activision Blizzard, Inc. (ATVI) for $68.7 billion.
The news sent ATVI quotes by about 30%, as a possible deal implies a significant premium. As a result, Microsoft shares declined slightly in price. The combined company will gain a lot of influence, including in the promising metaverse market, where Microsoft may have its essential role. First of all, Microsoft will gain control over many of the most valuable game franchises, for example, Call of Duty, Warcraft, Diablo, and Overwatch. These games will significantly increase the value of the Game Pass game package that Microsoft sells by subscription.
However, the major acquisition is the employees and achievements of Activision Blizzard, helpful in developing the concept of metaverses. Microsoft CEO Satya Nadela directly stated this. Metaverses, as spaces for work and entertainment, will require a combination of a graphical shell and a set of applications to perform various tasks: from a virtual call center to the design of complex structures by engineers in different parts of the world.
The integration of Microsoft and Activision Blizzard allows you to combine competencies in these two areas. The companies are leaders in their industries and are likely to successfully compete with the Meta Platform, which spends $10 billion a year on virtual reality technologies.
Thus, the mega-deal is vivid evidence of the beginning of the struggle for technological leadership in the metaverses. Some experts are still discussing the prospects of the concept of metaverses. However, the significance of such debates is minor: companies are already spending tens of billions on this concept.
For its success, it is enough to create a meta-office where employees will wear VR glasses in Asia and appear in a virtual workspace, for example, of an American IT giant. Against the background of a growing shortage of personnel, this is enough for the rapid spread of metaverses.
