Is the Microsoft and Activision deal a merger or an acquisition?

Microsoft announced that it would be purchasing Call of Duty and World of Warcraft developer Activision Blizzard in a gigantic acquisition. Notably, the company said Bobby Kotick would "continue to serve as CEO" of Activision Blizzard.

Did Microsoft and Activision merge?

Japan approves the acquisition

It said it had “reached the conclusion that the transaction is unlikely to result in substantially restraining competition in any particular fields of trade.” Here's a list of all the countries that have approved Microsoft's acquisition of Activision Blizzard so far: Japan.

Is Microsoft buying Activision a merger?

January 18, 2022 - Microsoft Announces It Will Acquire Activision Blizzard.

Is the Microsoft Activision deal finalized?

Apr. 28, 2022: Shareholders at Call of Duty and Overwatch 2 publisher Activision Blizzard voted overwhelmingly on Thursday to approve a $69 billion sale to tech giant Microsoft. The deal gives golden parachutes to top execs at Activision, including embattled CEO Bobby Kotick.

What would happen if Microsoft bought Activision?

Activision Blizzard own the Call of Duty franchise, one of the biggest in gaming history. If Microsoft's acquisition deal closes, they will own the Call of Duty series, and be able to do whatever they want with it on their Xbox systems going forward. Microsoft could have bought other companies, but it already did.

What The HELL Is Going On With The Microsoft-Activision Acquisition Deal?

What does Microsoft buying Activision mean?

The deal would grant Microsoft ownership over globally recognized franchises like Call of Duty, World of Warcraft, and Candy Crush, to name a few. It also creates a new division in the company, Microsoft Gaming, to be led by the company's head of its Xbox division, Phil Spencer.

Did the Activision acquisition get blocked?

The FTC is blocking the acquisition as it sees the deal as harmful to competition in the video game market.

Is Microsoft and Activision a horizontal merger?

While mergers between competitors on the same level are called horizontal mergers). However, the situation in Microsoft/Activision Blizzard is a vertical merger between supplier and distributor as Microsoft, a leading distribution platform, bought a top content maker.

Has Microsoft been involved in any mergers or acquisitions?

Microsoft has made fourteen acquisitions worth over one billion dollars: Skype (2011), aQuantive (2007), Fast Search & Transfer (2008), Navision (2002), Visio Corporation (2000), Yammer (2012), Nokia's mobile and devices division (2013), Mojang (2014), LinkedIn (2016), GitHub (2018), Affirmed Networks (2020), ZeniMax ...

What are the pros of Microsoft acquiring Activision?

According to the conclusion, the benefits of the acquisition were clear— taking over Activision Blizzard's game production process and expanding into more markets on top of it, while the potential threat was based on Microsoft's management capabilities and the feasibility of the metaverse concept.

Why did Microsoft merge with Activision?

Microsoft says it needs the deal to boost the Xbox

Microsoft says buying Activision would let it put more big titles on Game Pass - its Netflix-style subscription - and make more games for mobile phones, where there are big profits to be made.

What is a horizontal merger?

Horizontal Merger

A merger occurring between companies in the same industry. Horizontal merger is a business consolidation that occurs between firms who operate in the same space, often as competitors offering the same good or service.

What was the impact of Microsoft's acquisition of Activision Blizzard?

Microsoft's acquisition of Activision Blizzard could harm gamers, says UK regulator. The Competitions and Markets Authority has provisionally found that the acquisition of Activision Blizzard by Microsoft could reduce competition in console and cloud gaming.

What happens to my Activision stock after merger?

Following closing, all Activision Blizzard employee shareholders will be treated the same as other shareholders and receive $95.00 for each share of Activision Blizzard stock that they own.

Why Sony doesn t want Microsoft to buy Activision?

Microsoft and Sony have been at odds over the former's purchase of Call of Duty maker Activision Blizzard. Sony is concerned that the Windows maker might make the game exclusive to Xbox but those claims have fallen flat after Microsoft announced multi-year deals with Nintendo and Nvidia.

What is happening with Microsoft and Activision?

Microsoft announced that it would be purchasing Call of Duty and World of Warcraft developer Activision Blizzard in a gigantic acquisition. Notably, the company said Bobby Kotick would "continue to serve as CEO" of Activision Blizzard.

Why is Microsoft buying Activision a big deal?

Buying Activision will give Microsoft ownership of many of the world's biggest games: not just Call of Duty, but others, including mobile behemoths like Candy Crush. All of those will be part of Microsoft and can be used to boost the offering of the Xbox.

What does Microsoft deal mean for Activision shareholders?

This means shareholders will no longer own stock in the surviving business, which would be a wholly-owned subsidiary of Microsoft. However, shareholders will have the option to convert shares and will be entitled to receive $95 in cash for every Activision Blizzard share they hold.

Will Activision shares convert to Microsoft?

Once ATVI is delisted from the Nasdaq (US100), it means that those who have shares in Activision Blizzard will no longer own stock in the surviving business, as it will be owned by Microsoft.

Is Call of Duty going to be an Xbox exclusive?

Phil Spencer: Microsoft Will Not Make Any Call of Duty Content Exclusive to Xbox - News. Microsoft Gaming CEO Phil Spencer in an interview with Xbox On was asked about the Activision Blizzard deal and the future of Call of Duty.

Is Google owned by Microsoft?

In 2015, Google was reorganized as a wholly owned subsidiary of Alphabet Inc. Google is Alphabet's largest subsidiary and is a holding company for Alphabet's internet properties and interests.

What is the difference between merger and acquisition?

A merger occurs when two separate entities combine forces to create a new, joint organization. An acquisition refers to the takeover of one entity by another. The two terms have become increasingly blended and used in conjunction with one another.

What is the difference between a horizontal merger or acquisition?

There are many different types of mergers, but two common types are known as horizontal and vertical mergers. A horizontal merger is defined as one business acquiring another that is in direct competition with it. A vertical merger is defined as one business acquiring another that belongs to the same supply chain.

What is an example of 2 companies that would be a vertical merger?

A prominent example of a vertical merger is the merger between eBay and PayPal. eBay provides a platform that allows people to sell items, while PayPal allows buyers to pay for these items. This kind of merger can greatly increase efficiency.