On January 18 of this year, the company now run by Satya Nadella surprised us with an important announcement. The purchase intent of nearly 70,000 million from the world’s largest independent video game publisher. Well the Activision-Blizzard shareholders have given their consent to Microsoft. What was the final share price and what do we expect in the coming months?
One way to analyze a business is to look at its resources, processes, and motivations. The first thing is human, technological and economic capital. The second is what they know how to do, ie how they transform these resources into products and services. The third is the company’s ethics and, therefore, its policies. Even within the same sector, there is a disparity between these three elements. So some will be stronger at one time and others at another.
Well, in the video game console market, one of Redmond’s weak spots compared to its Japanese rivals was until recently its in-house video game development studios. The key is that the games they create, being exclusive to their platform, serve to increase sales. Microsoft’s problem? Their teams weren’t up to the job and that led them to first buy Bethesda for $7 billion and then make a $68 billion takeover bid on Activision-Blizzard. Which has just been approved by the shareholders.
Activision-Blizzard shareholders give Microsoft green light
There is no doubt that this is the purchase of the decade and the biggest purchase ever made in the video game worldyes And it is that the purchase proposal, for 68 billion dollars, Microsoft’s largest video game publisher, surprised us. However, we still needed to obtain approval from shareholders and the regulatory commission.
Well, until the United States Trade Commission, the FTC, finally approves the deal. The shareholders have already done so by agreeing on a final price of $95 per share.. Even though the entire purchase process is expected to be completed in June 2023right at the end of the next fiscal year. Until then, Activision-Blizzard-King will not be Microsoft. She will therefore remain independent for more than a year. So, with both parties in agreement, all that remains is to wait for the settlement to approve it.
This has little impact on us computer users due to the importance of PC gaming to both companies. However, on consoles and outside of already released and already announced projects before the purchase was finalized. Which translates to Xbox exclusivity for games released once the purchase is complete. Activision-Blizzard owns powerful intellectual properties such as Call of Duty, Warcraft, Diablo and popular on mobile candy Crush. This will strengthen Microsoft’s exclusive portfolio of consoles and services from 2023.