Microsoft announces they are acquiring ZeniMax Media, parent company of Bethesda
Softworks for $7.5 billion in cash. This will make Microsoft owner of Bethesda
Game Studios, id Software, ZeniMax Online Studios, Arkane, MachineGames, Tango
Gameworks, Alpha Dog, and Roundhouse Studios. The deal is subject to regulatory
approval, and is expected to be conclude by the end of fiscal 2021. As noted in
a
tweet
by Bloomberg's Jason Schreier, this means Xbox owner Microsoft is now actually
publishing two games as PlayStation 5 exclusives. There's more on the deal in a
post on
Xbox Wire by Xbox boss Phil Spencer. Here's the announcement:
As the
gaming industry transforms from a device-centric era to a player-centric era
powered by new technology that provides the freedom to play with friends
anywhere on any device, Microsoft (Nasdaq: MSFT) on Monday announced plans to
acquire ZeniMax Media, the parent company of Bethesda Softworks, one of the
largest, privately held game developers and publishers in the world. Creators of
critically acclaimed and best-selling gaming franchises including The Elder
Scrolls and Fallout among many others, Bethesda brings an impressive portfolio
of games, technology, talent, as well as a track record of blockbuster
commercial success, to Xbox. Under the terms of the agreement, Microsoft will
acquire ZeniMax Media for $7.5 billion in cash.
With unique investments in content, community, and the cloud, Microsoft's gaming
strategy differs from others by empowering people to play the games they want,
with the people they want, anywhere they want. Games are the primary growth
engine in gaming, and games are fueling new cloud-gaming services like Xbox Game
Pass, which has reached a new milestone of over 15 million subscribers. With the
addition of Bethesda, Microsoft will grow from 15 to 23 creative studio teams
and will be adding Bethesda's iconic franchises to Xbox Game Pass. This includes
Microsoft's intent to bring Bethesda's future games into Xbox Game Pass the same
day they launch on Xbox or PC, like Starfield, the highly anticipated, new space
epic currently in development by Bethesda Game Studios.
"Gaming is the most expansive category in the entertainment industry, as people
everywhere turn to gaming to connect, socialize and play with their friends,"
said Satya Nadella, CEO, Microsoft. "Quality differentiated content is the
engine behind the growth and value of Xbox Game Pass—from Minecraft to Flight
Simulator. As a proven game developer and publisher, Bethesda has seen success
across every category of games, and together, we will further our ambition to
empower the more than three billion gamers worldwide."
"This is an awesome time to be an Xbox fan. In the last 10 days alone, we've
released details on our two new consoles which go on pre-order tomorrow,
launched cloud gaming in Xbox Game Pass Ultimate, and now we're making another
investment in the most critical part of our strategy: the games," said Phil
Spencer, executive vice president, Gaming at Microsoft. "Generations of gamers
have been captivated by the renowned franchises in the Bethesda portfolio and
will continue to be so for years to come as part of Xbox."
The planned acquisition includes publishing offices and development studios
spanning the globe with over 2,300 employees, including Bethesda Softworks,
Bethesda Game Studios, id Software, ZeniMax Online Studios, Arkane,
MachineGames, Tango Gameworks, Alpha Dog, and Roundhouse Studios. Bethesda's
critically acclaimed and best-selling franchises include The Elder Scrolls,
Fallout, DOOM, Quake, Wolfenstein, and Dishonored, among others.
Bethesda parent company ZeniMax Media was founded in 1999 by Chairman and CEO
Robert A. Altman; Bethesda's structure and leadership will remain in place.
"This is a thrilling day for this company, our employees, and our fans. We have
enjoyed a close partnership with Microsoft for decades, and this deal is a
natural progression of those years working together," said Altman. "The big
winners today are our fans. We are continuing to develop our slate of AAA games,
but now with Microsoft's scale and entire Game Stack, our games can only get
better."
The transaction is subject to customary closing conditions and completion of
regulatory review. Microsoft expects the acquisition to close in the second half
of fiscal year 2021 and to have minimal impact to non-GAAP operating income in
fiscal years 2021 and 2022. Non-GAAP excludes the expected impact of purchase
accounting adjustments, as well as integration and transaction-related
expenses.