Microsoft buys Call of Duty developer Activision Blizzard for $68,7 billion
25 January 2022
A bit less than a week ago, Microsoft Gaming CEO Phil Spencer took to the official Xbox website to announce the acquisition of Activision Blizzard by American tech giant Microsoft. Activision Blizzard is the company behind hugely successful international esports titles and games like Call of Duty and World of Warcraft, but the organization has also suffered from bad press lately in relation to alleged harassment and other misconduct on its work floor.
Microsoft is paying 68,7 billion US dollars for complete ownership of the Santa Monica, California, based video game developer, including studios and workforce. This includes the company’s entire portfolio, which counts Call of Duty, Warcraft, Overwatch, Crash Bandicoot, and Tony Hawk among its most successful and profitable titles. With this move, Microsoft is firmly installing itself as a major player in the international esports industry.
One of Microsoft’s ambitions is to add as many of Activision Blizzard’s games as possible to the Xbox Game Pass subscription service, which will provide players on Xbox and PC unlimited access to the complete gaming library for a fixed fee per month. The company announced that it will be added both new and older games by Activision. “Until the agreement is definitive, Activision Blizzard and Microsoft will keep operating independently from each other”, says Spencer in his previously mentioned statement, “After that, Activision Blizzard will report to me as CEO of Microsoft Gaming”.
Activision Blizzard in hot water due to work floor misconduct allegations
Despite its success in the international esports arena, Activision Blizzard has lately been more of a topic for discussion due to allegations of discrimination and sexism on the work floor. Since last summer, the company has allegedly fired dozens of employees as a result of misconduct on the work floor. The cases are currently being investigated, but it should be noted that the company has denied all allegations.
More than a few international esports industry commentators have raised this point and identified it as a possible reason for Microsoft’s purchase of Activision Blizzard. The theory in this sense is that Microsoft has taken advantage of the current turmoil at Activision to acquire one of the most profitable video game portfolios in history at a lower price. The total purchase price of almost $70 billion, which amounts to about $95 per share, does nevertheless not suggest an extraordinary bargain for Microsoft, but more like an acquisition at an acceptable market price.
None of the statements regarding the acquisition mention the above, though. In his statement, Spencer does emphasize the importance of inclusivity. “We believe that creative success and independence go hand in hand with the equal and respectful treatment of every individual. This goes for every team and every employee. We look forward to expanding our culture to all of Activision Blizzard’s teams”.