Tuesday is already great for the game industry. This morning, Microsoft announced that it has entered into an agreement to buy Activision Blizzard, the largest third party game publishers in the world. Microsoft to pay nearly $ 70 billion for Activision Blizzard, made $ 7.5 billion paid for the ZeniMax Media subsidiary a year ago looks like a paltry amount.
This acquisition is very surprising because the price tag attached to the Activision Blizzard. At $ 68.7 billion, is the largest acquisition ever seen by the gaming world by a long shot. Not only that, but was there with some of the biggest acquisitions in all industries.
It also looks like the acquisitions that only Microsoft can make. Sony Group Corporation, a conglomerate, has a total of $ 156.64 billion market cap, while Nintendo has a market cap of 6.94 trillion yen (about $ 60 billion). Microsoft, by comparison, has a limit of $ 2.28 trillion market (through the company’s market cap), so while these three companies is probably a fierce competitor in the games room, Microsoft has more money for him than Sony or Nintendo.
While Sony and Nintendo have enough to buy another major publisher with a lower value, Microsoft really the only one who can issue a number like $ 68.9 billion for Activision Blizzard. Microsoft throws its resources with this acquisition, as it makes deals that its biggest competitor can not hope to match.
While Activision and Blizzard is great on its own behalf, it is not just two companies that are included in this deal. As ZeniMax before it, Activision has collected a number of studio subsidiaries throughout the year, and these are all included in the agreement with Microsoft. Studio subsidiary of Activision which will now live under the umbrella of Microsoft including Beoox, Demonware, Legend Digital, High Moon Studios, Infinity Ward, Radical Entertainment, Raven Software, Sledghammer Games, Solid State, Toys for Bob, and Treyarch.
Some studios are already familiar with the players. For example, Infinity Ward, the game Sledghammer, and Treyarch are all high-profile studios working on Call of Duty franchise (with the help of software such as crow’s studio), while toys for Bob has led to crash Bandicoot and Spyro Games.
So even though Microsoft has been getting a lot when you consider the library and the Blizzard game franchise Call of Duty, the company more than it through all the studio’s subsidiaries. There are some big names attached to this purchase, and will be interesting to see how Microsoft utilizing the studios when the acquisition is completed.
