Microsoft Acquiring Activision-Blizzard for $68.7 Billion - Kotick Gone After Deal Closes
News broke that Microsoft is going to buy up Activision-Blizzard for $68.7 billion in cash in the biggest deal in the sector, and that the intended take over will keep Bobby Kotick on as CEO. Read more in this article, which we quoted below!
UPDATE: This article was updated with a tweet about further reporting that indicates Kotick will be out after the deal closes.
Quote from ReutersJan 18 (Reuters) - Microsoft Corp (MSFT.O) said on Tuesday it was acquiring "Call of Duty" videogame maker Activision Blizzard (ATVI.O) for $68.7 billion in cash, the biggest deal in the sector that would help the Xbox maker become the third-largest gaming company by revenue.
Microsoft's offer of $95 per share is at a premium of 45% to Activision's Friday close. Shares of Activision were trading at $89.55 in trading before the bell.
"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," Microsoft Chief Executive Officer Satya Nadella said in a statement.
Microsoft has been making big investments in gaming, scooping up "Minecraft" maker Mojang Studios and Zenimax in multi-billion dollar deals in recent years.
Activision's library of games such as "Call of Duty" and "Overwatch" gives Microsoft's Xbox gaming platform an edge over Sony's (6758.T) Playstation, which has for years enjoyed a more steady stream of exclusive games.
Shares of the "Candy Crush" maker have slumped over 37% since hitting their record high last year, largely hurt by allegations of sexual harassment and other misconduct at the videogame company.
The company is still addressing those allegations and said on Monday it had fired or pushed out more than three dozen employees and disciplined another 40 since July.
Bobby Kotick will continue to serve as CEO of Activision Blizzard.
Now clear via @dinabass reporting that Bobby Kotick will be gone after the deal closes https://t.co/luaEGlRpJ5
— Jason Schreier (@jasonschreier) January 18, 2022
Jeebs man. Like Blizzards games are kinda dying out as most games do that just get updates not sequels but its still a decent purchase. However getting their hands on COD as well? Woe. Which is funny that COD was a Playstation favorite since PS4. Just wow. First Bethesda now Activision Blizzard? Like Sony do something... buy Disney? Haha.
How on earth does MS pay $68.7B and not appoint one of it’s members as CEO? Kotick is the luckiest guy in the industry, he has weathered the sexual misconduct scandal and a massive buyout. This is really unheard of, this is a man with 20 in luck and charisma and zeroes on the rest of his stats.
I'm sure sacrificing orphans to Molach probably has something to do with it.
MMO Champ added a tweet from Schreier that things might not be set in stone:
I've always been a PlayStation guy, myself, but I don't play shooters, so I'm fine with Overwatch and COD becoming XBox exclusives (assuming that's what happens).
Diablo 2, however, has been a lot more fun to me on PlayStation than on PC, for whatever reason, so I'll be sad if D4 gets an XBox-exclusive release.
Activision’s CEO, and he declined to say he will be CEO after the deal closes. "Post close I will be available as needed," he said. I feel if Activision-Blizzard is to improve, Kotick needs to go. Hopefully Microsoft will reign them in and inject some sanity into the company. It will likely be 1-2 years before we start to see the changes the new management teams/replacements and new products start to come out under the new guidance.
First the deal will complete, then higher management will be pruned and replaced by Microsoft voted execs, then will come a massive overhaul of staff in the lower levels with fine-tooth combing using HR records to get rid of problem makers and undesireables aswell as hiring new blood under the new, cleaner image. Probably a branding name change, certainly won't be Activision-Blizzard anymore. New projects will be slowed down/stopped, almost completed projects will continue so that games don't die from lack of content during transition. Finally, new projects under new leadership and direction will begin, this whole process will as I said likely take 1-2 years before we see what the management shift does for Hearthstone, WoW and other Blizzard products.
I read in another article that Kotick will have to report to Phil Spencer, Microsoft Gaming CEO. I'm sure Kotick will be removed after the transition and replaced by Spencer.
Nothing exciting here folks, let's manage our expectations, as long as Mad B is still at charge, we're basically stuck with weekly 25 $ Heroskins.... ....without animated Heropowers and Intro Animations, because that would be "too much bang for the buck".
The best propaganda posters couldn't match reality after glancing at these two.
This can save blizzard team. Why well, activation blizzard cant sink more. So MS just give a hand to the drowning company. so far MS has given the positive effect of buy company. But I rather want MS to buy it than Tencent, a matter of time that can happen.
EDIT: Oh that fagalaga (Bobby) stays as CEO! that sucks!
Biggest mistake Blizzard ever did was selling out immediately when they started becoming kingpins mid Wrath of the Lick King, if they would have held out another 3-4 years it would have been Blizzard buying Activision. Am happy this era is over tho, it's been a descent ever since they merged. At least there is slight hope we can see some improvements now, but either way Blizzard will never return to past glory those days are gone for good.
Poor Blizz devs. They'll have to start using Microsoft Teams now. Thinking of them <3
=P
Hey Teams is great lmao
Better than Lotus Sametime by miles.
Shame its on 2023
Microsoft's fiscal year 2023 starts on July 1, 2022, so closing this calendar year is possible.
oh thats cool. Sooner we get more games from the current Blizzard pool the better. Now i am not saying that i would expect a warcraft game in Aoe4 engine but ....
That's literally the only thing i didn't wanted to read.
it's just a matter of appealing to the markets at this point - MSFT has been rising as ATVI has been in decline in past months. There is time enough to replace sn leadership as the deal takes shape.
A beginning of a new age or a meaningless name change? Time will tell.