NEW YORK: Microsoft Corp is buying “Call of Duty” maker Activision Blizzard for US$68.7 billion (RM287.4 billion) in the biggest gaming industry deal in history as global technology giants stake their claims to a virtual future.
The all-cash deal announced by Microsoft on Tuesday, its biggest-ever acquisition, will bolster its firepower in the booming videogaming market where it takes on leaders Tencent and Sony. It also represents the American multinational’s bet on the “metaverse”, virtual online worlds where people can work, play and socialise, as many of its biggest competitors are already doing.
“Gaming is the most dynamic and exciting category in entertainment across all platforms today and will play a key role in the development of metaverse platforms,” Microsoft chief executive Satya Nadella said.
Microsoft’s offer of US$95 per share represents a premium of 45% to Activision’s Friday close.
Merging with troubled Activision will make Microsoft the third-largest gaming company by revenue, behind Tencent and Sony, it said, a major shift in the booming world of games.
“This acquisition will accelerate the growth in Microsoft’s gaming business across mobile, PC, console and cloud and will provide building blocks for the metaverse,“ Microsoft said in a statement.
Activision, the California-based maker of “Candy Crush” has been hit by employee protests, departures, and a state lawsuit alleging it enabled toxic workplace conditions and sexual harassment against women.
“Acquiring Activision will help jump start Microsoft’s broader gaming endeavors and ultimately its move into the metaverse with gaming the first monetisation piece of the metaverse in our opinion,“ Wedbush Securities analysts said after the news broke. – Reuters, AFP
Source: The Sun Daily
