Microsoft to buy Warcraft and Call of Duty developer for $68.7 billion



2022/01/18

Microsoft to buy Warcraft and Call of Duty developer for $68.7 billion

The deal will be closed in 2023, after its closure, Microsoft will become the third largest gaming company in the world by revenue after Tencent and Sony.

Microsoft has announced its decision to acquire Activision Blizzard, the developer of the iconic Warcraft, Diablo and Call of Duty games, paying $68.7 billion for it. For each Activision Blizzard share, $95 will be paid, which is almost one and a half times higher than the closing level of previous trades ($65.39). After the announcement of the deal, the value of Activision Blizzard securities on the premarket increased by about a third.

See also: choosing the best laptop for Sims 4

The deal is expected to close in 2023 and after its closure, Microsoft will become the third largest gaming company in the world by revenue after Tencent and Sony.

Under the terms of the deal, Microsoft will acquire the rights to iconic game franchises (in addition to those already named, including Starcraft, Overwatch, Candy Crush), as well as the rights to conduct esports competitions through Major League Gaming. The message about the deal notes that later her games will be added to the subscription service Game Pass (available to Xbox and PC owners), which will provide him with one of the most attractive and diverse lines of game content. At the same time, Microsoft expects to strengthen its position in the segment of mobile games.

"We are investing heavily in world—class content, the development of the gaming community and cloud technologies to open a new era where players and game creators will come first, and the games themselves will be safe, inclusive and accessible to everyone," Microsoft CEO Satya Nadella said about the company's plans.




Competing with Sony

The main competitor of Microsoft in the gaming market is the Japanese corporation Sony. According to statistics from the consulting company Ampere Analysis for the third quarter of 2021, Sony sold 12.8 million PlayStation 5 consoles, while Microsoft sold only 6.7 million Xbox Series X/S — half as many. Nintendo's Switch consoles remain the absolute leader by a significant margin — 89.7 million.

Sony's revenue from gaming and network services for the first quarter of fiscal year 2021 (ended June 30, 2021) amounted to ¥615.8 billion ($5.36 billion). Microsoft's report for the fourth quarter of fiscal year 2021 (calendar ended June 30, 2021) does not specify the exact figures of revenue from games, it is only noted that it increased by $357 million due to the growth in sales of Xbox equipment, partially offset by a decrease in demand for the company's content and services.

Activision Blizzard in its report on the results of the second quarter of 2021 (ended June 30, 2021) reported revenue of $2.3 billion (an increase of 16% compared to the same period last year). Of these, $568 million was brought by sales of goods, $1.7 billion - in-game spending by users, subscriptions and other segments.

The purchase of Blizzard primarily strengthens the corporation's position in the confrontation with Sony in the console market. Sony's key advantage — the number of exclusives - is greatly weakened in the new conditions. "Microsoft clearly sees great prospects in the gaming direction, monetization of the gaming audience and synergy with its other solutions, such as cloud services. As for Activision Blizzard, I believe that it is good for her. In recent years, the company's policy regarding many products has caused dissatisfaction among gamers. In fact, many series were abandoned to the mercy of fate, and, for example, the esports potential of Overwatch, StarCraft 2, Hearthstone and Heroes of the Storm is almost lost. In fact, the company had only an incredibly successful Call of Duty franchise, which set records for sales and monetization. There is no doubt that Microsoft will be able to reverse the negative trend.

In Call of Duty Modern Warfare alone, on average, 2 million people play online at the same time, according to various statistics collection sites. For comparison: Valve's Counter-Strike: Global Offensive is played by 400-500 thousand people at the same time. "Taking into account Microsoft's purchase of the gaming industry giant Bethesda earlier in March 2021, the company is beginning to gradually move towards market dominance. Sony should be afraid of changes in the balance of power in the market, since it will now be more difficult for them to surprise everyone with exclusives.

Michael Zippo
https://linkedin.com/in/michael-zippo-9136441b1
info@e-book.business

Sources: Microsoft, RBC





Business books: Top Picks

1
ITIL 4 Foundation PDF
ITIL v4 PDF Publisher: Axelos The ITIL v4 Foundation book by AXELOS

2
Business Model Generation book
Business Model Generation By Alexander Osterwalder, Yves Pigneur

3
The Intelligent Investor PDF
The Intelligent Investor Publisher: Collins Business Essentials

4
Investment Banking: Valuation, Leveraged Buyouts and Mergers and Acquisitions
Rosenbaum and Pearl PDF Publisher: Wiley

5
Fundamentals of Corporate Finance PDF
Fundamentals of Corporate Finance Publisher: Collins Business Essentials



Best Business Management books

#1ITIL Foundation: 4th edition

The fourth edition of ITIL (IT Infrastructure Library) was presented by Axelos in February 2019. The ITIL v4 (PDF and other versions available) focuses on practical aspects of IT management and provides a holistic approach with emphasize on Agile, DevOps and digital transformation topics.

#2The Subtle Art of Not Giving a Fuck

The Subtle Art of Not Giving a F*ck: A Counterintuitive Approach to Living a Good Life. In this generation-defining self-help guide, a superstar blogger cuts through the crap to show us how to stop trying to be “positive” all the time so that we can truly become better, happier people. For decades, we’ve […]

#3Read People Like a Book

Read People Like a Book: How to Analyze, Understand, and Predict People’s Emotions, Thoughts, Intentions, and Behaviors (How to be More Likable and Charismatic).

#4Fundamentals of Corporate Finance

Fundamentals of Corporate Finance 13th Edition (International Edition). This book was designed and developed explicitly for a first course in business or corporate finance, for both finance majors and non-majors alike. In terms of background or prerequisites, the book is nearly self- contained, assuming some familiarity with basic algebra and accounting concepts, while […]

#5The Intelligent Investor

One of the greatest investors of the twentieth century, Benjamin Graham, proposed his philosophy of “value investing” that could protect investors from dramatic errors and teaches them to develop long-term strategies. This approach is exhaustively explained in The Intelligent Investor (PDF download available) book, which remains the stock market bible since its first […]

#6How Money Works

Money is the oil that keeps the machinery of our world turning. By giving goods and services an easily measured value, money facilitates the billions of transactions that take place every day. Without it, the industry and trade that form the basis of modern economies would grind to a halt and the flow […]

#7Business Communication

Everyday Business Storytelling: Create, Simplify, and Adapt A Visual Narrative for Any Audience. Communication is one of the basic functions of management in any organization and its importance can hardly be overemphasized. It is a process of transmitting information, ideas, thoughts, opinions and plans between various parts of an organization. Good and effective […]

#8How Business Works

Every type of business has to choose an ownership structure. Although there are variations globally, most countries offer similar types of legal entities, from a single- person private enterprise to a massive organization trading on a stock exchange. There are three key considerations: how big the venture is expected to grow; the complexity […]

#9The Essential Manager’s Handbook

The step up to a managerial role can be an exciting, but daunting, new challenge. Suddenly, you are responsible for making sure your team is working together, achieving results, and that overall your department is running smoothly. There is no single technique to becoming an excellent manager, but the Essential Manager’s Handbook provides […]

#10Operations Management

Operations Management is important, exciting, challenging, and everywhere your look! Important, because it’s concerned with creating all of the products and services upon which we depend. Exciting, because it’s at the centre of so many of the changes affecting the world of business. Challenging, because the solutions that we find need to work […]


Best books for entrepreneurs


#11Where Are the Customers Yachts

In 1940 Fred Schwed, a stockbroker whose father had lost everything as a short seller on Wall Street during the Roaring Twenties, published this timeless classic on how the stock market really works. Schwed, a pleasure-loving, cultured man who had been expelled from Princeton University in his final year for entertaining a lady […]

#12Corporate Finance 11th Edition

Corporate Finance, Eleventh Edition This book has been written for the introductory courses in corporate finance at the MBA level and for the intermediate courses in many undergraduate programs. Some instructors will find our text appropriate for the introductory course at the undergraduate level as well.

#13ISE International Business: Competing in the Global Marketplace

The 13th edition provides a complete solution that is relevant (timely, comprehensive), practical (focus on applications of concepts), integrated (integrated progression of topics) and the most up-to-date on the market. Available with Connect: Our highly reliable homework and learning management solution that embeds learning science and award-willing adaptive tools to improve student results.

#14Winning: The Unforgiving Race to Greatness

Winning: The Unforgiving Race to Greatness (Tim Grover Winning Series) From the elite performance coach who wrote the international bestseller Relentless and whose clients included Michael Jordan, Kobe Bryant, and Dwyane Wade, comes this brutally honest formula for winning in business, sports, or any arena where the battle is relentless.

#15Your Next Five Moves: Master the Art of Business Strategy

From the creator of Valuetainment, the number one YouTube channel for entrepreneurs, comes a practical and effective guide for thinking more clearly and achieving your most audacious business goals. Both successful entrepreneurs and chess grandmasters have the vision to look at the pieces in front of them and anticipate their next five moves. […]

#16Your Next Five Moves

Your Next Five Moves: Master the Art of Business Strategy (Hardcover / Audio / Kindle). Creator of Valuetainment, the # 1 YouTube channel for entrepreneurs and “one of the most exciting thinkers” (Ray Dalio, Principles author) in business today, provides a practical and effective guide to thinking more clearly and getting the most out […]

#17Finding the Winning Edge

When those who chronicle the history of the game list the individuals who had the greatest impact on the National Football League, Bill Walsh will clearly be among the names of Halas, Lombardi, Brown, Landry, Noll and Shula. But when you consider who has impacted the game most in terms of those who […]

#18International GAAP 2020 2021

Generally Accepted Accounting Practice under International Financial Reporting Standards. The content of this book takes into account all accounting standards and other relevant rules issued up to September 2020. Consequently, it covers the IASB’s Conceptual Framework for Financial Reporting and authoritative literature listed below. References in the main text of each chapter to […]

#19Schweser FRM Part I Secret Sauce

This review book is a valuable addition to the study tools of any FRM exam candidate. It offers concise coverage of exam topics to enhance your retention of the FRM curriculum. We suggest that you use this book as a companion to your other, more comprehensive study materials.

#20We Should All Be Millionaires

We Should All Be Millionaires: A Woman’s Guide to Earning More, Building Wealth, and Gaining Economic Power. Are you ready to fill your life with more peace, power and joy? We Should All Be Millionaires details a realistic, achievable and step-by-step path to create the support, trust and plan you need to master […]