(BFM Bourse) – The giant Microsoft announced on Tuesday its plan to buy Activision Blizzard, the American video game giant behind the Call Of Duty, Candy Crush or World of Warcraft series, plagued by scandal in the face of to the proliferation of revelations of acts of harassment.
Long present in the world of video games with the acquisition of the Flight Simulator license in 1982, where the group has particularly strengthened over the past twenty years since the launch of the Xbox, the giant Microsoft announced on Tuesday an acquisition which will de facto make it the new world number 3 (behind Tencent and Sony): the acquisition of the Californian publisher Activision Blizzard.
This acquisition aims to accelerate the group’s growth in the video game market (which itself is growing significantly faster than the rest of the economy) through mobile platforms, PC and consoles, as well as through the cloud computing , and to constitute a growth relay for the advent of the metaverse. For this, Microsoft offers 95 dollars per Activision Blizzard share, which values the publisher of World of Warcraft 68.7 billion dollars (including cash), which is by far the largest acquisition ever made by the group founded by Bill Gates. . Already approved by the directors of the two companies, the merger would be effective in 2023 subject to the usual conditions and the approval of the competition authorities.
Activision Blizzard is particularly known for its many successful franchises such as Call of Duty, Warcraft, Diablo, Guitar Hero, Heroes of the storm or StarCraft.
Microsoft boss Satya Nadella pointed out that gaming, which is already the fastest growing segment of the entertainment universe, is expected to play a leading role in the development of future metaverse platforms. “We are investing today in world-class content and community, and in the cloud, ushering in a new era that puts gamers and creators first, and makes games safe, inclusive and accessible. everyone,” he said.
A bonus of 45%
For Activision Blizzard shareholders, the price offered represents a premium of 45% on the last quoted price, but is slightly below the historic record of more than 102 dollars reached at the start of 2021. Since then, the group resulting from the merger in 2008 between Activision Publishing and Vivendi’s video game arm, Blizzard Entertainment, was the subject of a long series of accusations of sexual harassment and discrimination against certain employees, resulting in dozens of layoffs and the loss of several sponsors.
In July, a Californian body (California Department of Fair Employment and Housing) filed a complaint against Activision Blizzard, accusing the group of having deliberately ignored the harassing behavior denounced by many employees for too long. An article from wall street journal highlighted the fact that Bobby Kotick, still CEO currently, had glossed over many accusations he was aware of, including rape in some cases. A petition calling for his resignation has been signed by almost a fifth of the group’s 10,000 employees.
In its press release, Microsoft indicates that Bobby Kotick continues to lead the company for the time being. Once the acquisition is completed, the responsibility for the activity of Activision Blizzard would pass to Phil Spencer, current boss of Microsoft Gaming.
The announcement comes eight days after that of the proposed takeover of mobile game specialist Zynga by Take-Two Interactive, the number three American player in the industry.
Guillaume Bayre – ©2022 BFM Bourse