What are the pros of Microsoft acquiring Activision?

Why should Microsoft buy 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 would happen if Microsoft bought Activision?

Microsoft has a lot going on, including a cloud gaming service that allows games to be played on any computer or mobile device called Xbox Cloud Gaming. If Microsoft owns Activision Blizzard, it will easily have the best library in cloud gaming on the market, with almost no competition.

Why did Microsoft buy cod?

“Its vision for the transaction is simple: Xbox wants to grow its presence in mobile gaming, and three-quarters of Activision's gamers and more than a third of its revenues come from mobile offerings,” according to Microsoft.

What are the cons of Activision?

The organization of employees on strike, rampant cheating issues, controversy and backlash over cheap monetization efforts and microtransactions, bugs and technical issues, among other problems, have all caused a decline in quality in Activision Blizzard-published live service games.

What Will Microsoft Do If It Can't Buy Activision?

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.

What are Activision being sued for?

That would reduce employee mobility and leverage at exactly the wrong time, when Activision is “engulfed in lawsuits” over its toxic culture of gender discrimination and sexual harassment, according to the complaint.

Why did Microsoft overpay for Activision?

Most people think that Microsoft overpaid with the $70 billion price tag on Activision Blizzard. Not necessarily. People tend to look at this as a consolidation deal, where Microsoft buying a company at a decline, which is not. The important point of the deal was to facilitate Category Acceleration.

What happens to Activision stock after acquisition?

What happens to vested options: Activision Blizzard stock options that have vested prior to merger closing (other than underwater options) will be cancelled in exchange for a cash payment equal to the excess, if any, of the per share merger consideration of $95.00 over the exercise price, less any applicable tax ...

What is Microsoft doing with Call of Duty?

Microsoft has repeatedly said it has no plans to make Call of Duty exclusive. The software giant has offered to keep Call of Duty on PlayStation for several years and a similar deal to Nintendo Co. for its Switch console.

Why doesn t Microsoft buy Activision?

US agency moves to block landmark merger of Microsoft and Activision Blizzard. The US Federal Trade Commission (FTC) has moved to block Microsoft's takeover of video game company Activision Blizzard, citing concerns that the deal would thwart competition by denying rivals access to popular gaming content.

How will Microsoft affect World of Warcraft?

MrGM anticipates World of Warcraft could potentially be added to Microsoft's PC Game Pass. WoW can already be played with controllers, so the game could potentially see a release on consoles in the future. Activision owns the iconic Crash Bandicoot and Spyro. Crossovers in other games could also happen.

Did Microsoft get blocked from buying Activision?

The planned Microsoft Activision acquisition has been provisionally blocked by the UK's antitrust watchdog, the Competition and Markets Authority (CMA) …

What does Sony say about Microsoft buying Activision?

Sony's Objection to Microsoft's Acquisition

In response, he commented that “after almost 20 years of Call of Duty on PlayStation, their proposal was inadequate on many levels and failed to take account of the impact on our gamers.”

Why is Microsoft so valuable?

Microsoft's main revenue drivers come from its cloud computing business and Office productivity software subscriptions. That's not exciting, it's boring. It's also very profitable and reliable as a source of revenue, two things that are very important to investors.

What is Microsoft paying for Activision per share?

The deal is valued at $68.7B. Michael Pachter weighs in on the all-cash transaction that will pay $95 per share of ATVI. Activision Blizzard CEO Bobby Kotick will continue in current role.

Should you sell stock after merger?

After a Merger

The average takeover premium, or price at which a company is bought out, generally ranges between 20-40%. If an investor is lucky enough to own a stock that ends up being acquired for a significant premium, the best course of action may be to sell it.

Is Activision a good stock to buy now?

Is Activision Blizzard Stock a good buy in 2023, according to Wall Street analysts? The consensus among 12 Wall Street analysts covering (NASDAQ: ATVI) stock is to Strong Buy ATVI stock.

What is the status of Microsoft Activision deal?

Reuters has reported that while the FTC requested a block on the deal in December 2022, arguing Microsoft would gain an unfair competitive advantage over its rivals should it acquire Activision Blizzard, no significant settlement discussions have taken place, as of January 2023.

What happens when Microsoft buys Activision Blizzard?

Upon completion of the deal, Activision Blizzard would be a sibling entity to Xbox Game Studios under a new Microsoft Gaming division with Phil Spencer as its lead. The deal would also allow Microsoft to offer Activision Blizzard games on its Xbox Game Pass service.

What is the Activision deal with Xbox?

The deal would see Activision, Blizzard Entertainment, and King become a part of the Xbox Game Studios brand, with Microsoft gaining control over franchises like Call of Duty, Candy Crush, and World of Warcraft.

Why are gamers suing Microsoft?

The proposed acquisition would give Microsoft "both the means and motive to harm competition" by manipulating pricing, making games worse on its competitors' video game consoles, "or withholding content from competitors entirely, resulting in harm to consumers," the agency said in a press release.

What went wrong with Activision?

Activision Blizzard is sued by the California Department of Fair Employment and Housing, as the result of a two-year investigation from the agency, citing allegations of harassment, discrimination, and a toxic workplace culture. What is this?

Can Activision sue cheaters?

In October 2022, Activision claimed “high-profile” streamers used Warzone cheats in a lawsuit against EngineOwning, a well-known cheat provider. The Warzone developers originally sued the cheat sellers in January 2022, claiming their cheats caused “millions of dollars” in damages.

Who is against the Activision deal?

The UK's Competition and Markets Authority (CMA) has said it is opposed to Microsoft's planned purchase of games developer Activision Blizzard. The CMA said it had provisionally concluded it would result in higher prices, fewer choices and less innovation.