How Microsoft Benefits From its $69.7 Billion Activision Blizzard Acquisition ?
<p>On January 18, <a href='https://financialmodelingprep.com/financial-summary/MSFT'>Microsoft Corporation (NASDAQ:MSFT) </a>has announced its plan to acquire <a href='https://financialmodelingprep.com/financial-summary/ATVI'>Activision Blizzard, Inc. (NASDAQ:ATVI) </a>in an all-cash transaction worth $95.00 per share, which makes the deal worth $69.7 billion.</p>
<p>While Microsoft outlined its belief that Activision Blizzard will prove a strong asset in building a metaverse product, the IP that Microsoft will be acquiring should have an immediate impact. First, adding games such as Call of Duty to the Game Pass portfolio should provide a major boost to the current subscriber base. Furthermore, the Activision Blizzard portfolio will significantly boost the diversity of Microsoft games, particularly in terms of mobile and free-to-play (F2P) content, areas in which Microsoft has not yet built a strong presence.</p>
<p>While the analysts at Berenberg Bank believe there is a strong chance that this deal will complete (exp. 2023), they acknowledge that elements to lead to questions and concerns from regulators is the fact that following completion of the deal, Microsoft could theoretically make all Activision Blizzard console games Xbox exclusives, which would be very damaging for PlayStation and therefore Sony. </p>

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