Microsoft Purchasing Activision Blizzard

Xbox Wire announces that Microsoft has agreed to purchase Activision Blizzard. This is covered in a report on The New York Times (may require registration or subscription) which calls the move "a big bet on the metaverse" and puts the price-tag at nearly USD$70 billion (we've seen it narrowed to $68.7 billion). Word is: "Microsoft would gain Activision’s nearly 400 million monthly gaming users and access to some of the world’s most popular games, which are expected to form a cornerstone of the metaverse. Combining with Microsoft will also give Activision access to a vast array of artificial intelligence and other programming talent." A complication is that Activision Blizzard has been embroiled in lawsuits over sexual harassment for some time now. This makes the timing of the acquisition interesting, since Microsoft just announced plans to review its own harassment and discrimination policies, including an evaluation of Microsoft's past investigations into allegations against former CEO Bill Gates. Here's part of the story that addresses this:
It is also a challenge to regulators in Washington, as Democrats and Republicans alike have pushed to limit the power of technology giants.

In buying Activision, which faced accusations of sexual harassment and discrimination that senior executives ignored, Microsoft appears to be rebuffing a controversy about the game maker’s workplace culture. The allegations have weighed on Activision, with its shares falling 27 percent since California sued the company in July over the matter. The game maker’s shares are up nearly 40 percent in premarket trading. Microsoft’s shares fell by 1 percent after the announcement.

The transaction may be seen as a victory for Bobby Kotick, Activision’s longtime chief executive, whom some critics had sought to oust over the controversy. Mr. Kotick negotiated a big premium for investors — Microsoft is paying $95 a share, roughly 45 percent above his company’s stock price before the announcement — and will continue running the company.
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55.
 
Re: MS Purchasing Activision
Jan 21, 2022, 02:48
55.
Re: MS Purchasing Activision Jan 21, 2022, 02:48
Jan 21, 2022, 02:48
 
Kotick will be going quietly into the night, answering for nothing. But if this means that employees can get paid enough to not be on fucking foodstamps and the culture so abusive and toxic that it is continuously turning up more filth even now can be abolished then I'll take that as a win. I'm just disgusted that I have to care more about those kind of things than something simple like the effect that this merger will have on gaming. Sometimes I'd rather be one of those ignoramus gamers who just like boobs and Call of Duty.
“The greatness of a nation and its moral progress can be judged by the way its animals are treated.”
- Mahatma Gandhi
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54.
 
Re: MS Purchasing Activision
Jan 19, 2022, 05:32
54.
Re: MS Purchasing Activision Jan 19, 2022, 05:32
Jan 19, 2022, 05:32
 
RogueSix wrote on Jan 18, 2022, 18:10:

Are you referring to Kotick? He's been the CEO of Activision since 1991. His "weakened" company is now making annual revenues of over $8 billion. Kotick is responsible for a near 100% revenue increase over the last ten years. Going back all the way to 2005, we are talking about a 1000% increase (10 fold increase from $780 million to over $8 billion). Like it or not, but the company has been immensely successful under Kotick's long tenure.

Is he though? Is he really responsible for all of that? He himself, personally? Or did he just play his cards right to be in the right place at the right time? I mean none of those fantastically selling IPs and the developers who created them had anything to do with that success right? Nothing at all....
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53.
 
Re: MS Purchasing Activision
Jan 18, 2022, 23:41
53.
Re: MS Purchasing Activision Jan 18, 2022, 23:41
Jan 18, 2022, 23:41
 
Dacron wrote on Jan 18, 2022, 22:26:
With Bethesda being bought out isn't Starfield confirmed to be xbox/PC only? I can imagine Elder Scrolls 6 following suit, at least at launch.

Yes, Starfield is PC/XBox only.
52.
 
Re: MS Purchasing Activision
Jan 18, 2022, 22:26
52.
Re: MS Purchasing Activision Jan 18, 2022, 22:26
Jan 18, 2022, 22:26
 
The Half Elf wrote on Jan 18, 2022, 17:07:

As for "the squeeze".... eh... I doubt that COD will be a system exclusive (maybe a timed one), but Sony's in house exclusives pretty much dominate anything that Microsoft has put out exclusive wise since the Xbox 360.


With Bethesda being bought out isn't Starfield confirmed to be xbox/PC only? I can imagine Elder Scrolls 6 following suit, at least at launch.
Currently setting a record for most edited posts, 1 reply at a time.
51.
 
Re: MS Purchasing Activision
Jan 18, 2022, 18:48
51.
Re: MS Purchasing Activision Jan 18, 2022, 18:48
Jan 18, 2022, 18:48
 
RogueSix wrote on Jan 18, 2022, 18:10:
milspecmonkey wrote on Jan 18, 2022, 16:24:
Hired for long term company health: Wreck company with short sighted policy, make a bunch of money for self selling off said weakend company....task failed successfully?

Are you referring to Kotick? He's been the CEO of Activision since 1991. His "weakened" company is now making annual revenues of over $8 billion. Kotick is responsible for a near 100% revenue increase over the last ten years. Going back all the way to 2005, we are talking about a 1000% increase (10 fold increase from $780 million to over $8 billion). Like it or not, but the company has been immensely successful under Kotick's long tenure.

Fair point, perhaps in my head I was seeing it more from the view of the seemingly unnecessary downfall of the Blizzard side.
But like you say sometimes things are sad truths like the story of Konami doing just fine financially despite doing about everything the old school fans hate.
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50.
 
Re: MS Purchasing Activision
Jan 18, 2022, 18:48
Kxmode
 
50.
Re: MS Purchasing Activision Jan 18, 2022, 18:48
Jan 18, 2022, 18:48
 Kxmode
 
Kosumo wrote on Jan 18, 2022, 16:32:
RogueSix wrote on Jan 18, 2022, 14:27:
MoreLuckThanSkill wrote on Jan 18, 2022, 14:14:
Ugh, I had forgotten Tencent somehow. So Tencent, Microsoft, Ubisoft, then lesser players Sony, Valve, EA, Epic, etc.

UbiSoft? Ubi is a dwarf compared to Tencent, Microsoft, Sony, EA and Actiblizz. Ubi is probably smaller than Valve even (given revenue estimates of at least $4bn/year for Valve). UbiSoft's annual revenue last year was something like $2.5 billion. That's nothing. They are a small garage studio in comparison to Tencent, Sony, MS, EA, Actiblizz, Take Two and many others... in FY 2019/2020 Ubi was in 13th place according to Wikipedia:

1) Sony
2) Tencent
3) Nintendo
4) Microsoft
5) NetEase (yeah, who? Wink )
6) Actiblizz
7) EA
8) Take Two
9) Bandai Namco
10) Square Enix
11) Nexon
12) Netmarble
13) UbiSoft
...

Surly CIG/RSI is the biggest. It should be at 0 on that list.
It's a zero for most people.
"The present is a veil between anticipation and horror. Lift the veil... and madness may follow." source
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49.
 
Re: MS Purchasing Activision
Jan 18, 2022, 18:29
49.
Re: MS Purchasing Activision Jan 18, 2022, 18:29
Jan 18, 2022, 18:29
 
He can buy an island now filled with hot girls and pig outfits for the men

Jim wrote on Jan 18, 2022, 18:12:
I am betting Kotic probably gets a billion dollar payday. Life is good when you are the king
48.
 
Re: MS Purchasing Activision
Jan 18, 2022, 18:12
Jim
48.
Re: MS Purchasing Activision Jan 18, 2022, 18:12
Jan 18, 2022, 18:12
Jim
 
I am betting Kotic probably gets a billion dollar payday. Life is good when you are the king
47.
 
Re: MS Purchasing Activision
Jan 18, 2022, 18:10
47.
Re: MS Purchasing Activision Jan 18, 2022, 18:10
Jan 18, 2022, 18:10
 
milspecmonkey wrote on Jan 18, 2022, 16:24:
Hired for long term company health: Wreck company with short sighted policy, make a bunch of money for self selling off said weakend company....task failed successfully?

Are you referring to Kotick? He's been the CEO of Activision since 1991. His "weakened" company is now making annual revenues of over $8 billion. Kotick is responsible for a near 100% revenue increase over the last ten years. Going back all the way to 2005, we are talking about a 1000% increase (10 fold increase from $780 million to over $8 billion). Like it or not, but the company has been immensely successful under Kotick's long tenure.
46.
 
Re: MS Purchasing Activision
Jan 18, 2022, 17:16
46.
Re: MS Purchasing Activision Jan 18, 2022, 17:16
Jan 18, 2022, 17:16
 
say good buy to now Activision games for PS5 for at least 2-3 years after release and before you say something smart think starfield. best of all Microsoft wont tell you about it for at least until 2023 when they take full control. So if you are on the fence about a p5 or a xbox you may want to rethink what you want to play.
45.
 
Re: MS Purchasing Activision
Jan 18, 2022, 17:07
45.
Re: MS Purchasing Activision Jan 18, 2022, 17:07
Jan 18, 2022, 17:07
 
Verno wrote on Jan 18, 2022, 11:57:
One company throwing this much capital around and obtaining a dominant market position through mergers/acquisitions is never a good thing for consumers in the long run. Sony is going to get slowly squeezed when this deal completes in 2023 and Microsoft makes CoD and etc exclusive to their platforms. Microsoft has been playing nice under Phil Spencer but eventually they will turn the screws on consumers in the name of shareholder profits. I wonder when we'll start hearing antitrust noise, I guess politicians don't care much about the gaming industry unless someone puts a naked woman in a game.

Lucasarts and Marvel would like to disagree.

As for "the squeeze".... eh... I doubt that COD will be a system exclusive (maybe a timed one), but Sony's in house exclusives pretty much dominate anything that Microsoft has put out exclusive wise since the Xbox 360.
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44.
 
Re: MS Purchasing Activision
Jan 18, 2022, 16:32
44.
Re: MS Purchasing Activision Jan 18, 2022, 16:32
Jan 18, 2022, 16:32
 
RogueSix wrote on Jan 18, 2022, 14:27:
MoreLuckThanSkill wrote on Jan 18, 2022, 14:14:
Ugh, I had forgotten Tencent somehow. So Tencent, Microsoft, Ubisoft, then lesser players Sony, Valve, EA, Epic, etc.

UbiSoft? Ubi is a dwarf compared to Tencent, Microsoft, Sony, EA and Actiblizz. Ubi is probably smaller than Valve even (given revenue estimates of at least $4bn/year for Valve). UbiSoft's annual revenue last year was something like $2.5 billion. That's nothing. They are a small garage studio in comparison to Tencent, Sony, MS, EA, Actiblizz, Take Two and many others... in FY 2019/2020 Ubi was in 13th place according to Wikipedia:

1) Sony
2) Tencent
3) Nintendo
4) Microsoft
5) NetEase (yeah, who? Wink )
6) Actiblizz
7) EA
8) Take Two
9) Bandai Namco
10) Square Enix
11) Nexon
12) Netmarble
13) UbiSoft
...

Surly CIG/RSI is the biggest. It should be at 0 on that list.
43.
 
Re: MS Purchasing Activision
Jan 18, 2022, 16:24
43.
Re: MS Purchasing Activision Jan 18, 2022, 16:24
Jan 18, 2022, 16:24
 
Hired for long term company health: Wreck company with short sighted policy, make a bunch of money for self selling off said weakend company....task failed successfully?
Troll signature removed. - For showing people their own quotes
42.
 
Re: MS Purchasing Activision
Jan 18, 2022, 16:00
Verno
 
42.
Re: MS Purchasing Activision Jan 18, 2022, 16:00
Jan 18, 2022, 16:00
 Verno
 
RogueSix wrote on Jan 18, 2022, 15:55:
Verno wrote on Jan 18, 2022, 15:52:
Sony having a greater marketshare of gaming revenue doesn't mean much either. Microsoft has market cap of 3 trillion and throws its full weight around when financing acquisitions, it's not limited to what the "Xbox division" generates.

Microsoft market cap, as I posted down below, is $2.3 trillion. The one with $3 trillion is Apple and they are (so far) the only corp which has exceeded that $3tn threshold.

Oh right my apologies, I had confused Apple and MS (somehow!).
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41.
 
Re: MS Purchasing Activision
Jan 18, 2022, 15:58
Kxmode
 
41.
Re: MS Purchasing Activision Jan 18, 2022, 15:58
Jan 18, 2022, 15:58
 Kxmode
 
Fantaz wrote on Jan 18, 2022, 15:38:
CANDY CRUSH!!
King money!
"The present is a veil between anticipation and horror. Lift the veil... and madness may follow." source
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40.
 
Re: MS Purchasing Activision
Jan 18, 2022, 15:55
40.
Re: MS Purchasing Activision Jan 18, 2022, 15:55
Jan 18, 2022, 15:55
 
Verno wrote on Jan 18, 2022, 15:52:
Sony having a greater marketshare of gaming revenue doesn't mean much either. Microsoft has market cap of 3 trillion and throws its full weight around when financing acquisitions, it's not limited to what the "Xbox division" generates.

Microsoft market cap, as I posted down below, is $2.3 trillion. The one with $3 trillion is Apple and they are (so far) the only corp which has exceeded that $3tn threshold.

And I agree that the full weight of the company needs to be considered. Microsoft/Actiblizz themselves are talking "metaverse" with regard to the acquisition. It's not as clear-cut anyway. The cloud business, for example, is serving the gaming division. You can't draw a hard line in the sand where the gaming division begins and ends. It's all in a constant state of flux.
39.
 
Re: MS Purchasing Activision
Jan 18, 2022, 15:52
Verno
 
39.
Re: MS Purchasing Activision Jan 18, 2022, 15:52
Jan 18, 2022, 15:52
 Verno
 
Bent wrote on Jan 18, 2022, 15:06:
The big three are now, in order, Tencent, Sony, Microsoft

Actually, that's only for gaming revenue. Supposedly Microsoft dwarfs Sony otherwise.

Sony having a greater marketshare of gaming revenue doesn't mean much either. Microsoft has market cap of 3 trillion and throws its full weight around when financing acquisitions, it's not limited to what the "Xbox division" generates.
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38.
 
Re: MS Purchasing Activision
Jan 18, 2022, 15:42
38.
Re: MS Purchasing Activision Jan 18, 2022, 15:42
Jan 18, 2022, 15:42
 
RogueSix wrote on Jan 18, 2022, 14:27:
1) Sony
2) Tencent
3) Nintendo
4) Microsoft
5) NetEase (yeah, who? Wink )
6) Actiblizz
7) EA
8) Take Two
9) Bandai Namco
10) Square Enix
11) Nexon
12) Netmarble
13) UbiSoft

Nice, thanks for the informed list. Also for some reason I thought Square Enix was bought out a long time ago by Sony or somebody, but apparently not.

Beamer -> yeah for just their video game portions; really I was pulling my order out of thin air.
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37.
 
Re: MS Purchasing Activision
Jan 18, 2022, 15:41
37.
Re: MS Purchasing Activision Jan 18, 2022, 15:41
Jan 18, 2022, 15:41
 
This is Kotick's deal, so Kotick negotiating to stay until he chooses to leave is fine. It would however be unusual for any leader, especially an old and senior founder, to stay on reporting to anyone. I expect Kotick to retire, one way or another, once things settle down.
36.
 
Re: MS Purchasing Activision
Jan 18, 2022, 15:38
36.
Re: MS Purchasing Activision Jan 18, 2022, 15:38
Jan 18, 2022, 15:38
 
CANDY CRUSH!!
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