Microsoft to buy Activision in $68 7 billion all-cash deal

Lévy instead offered that he would be willing to merge Vivendi Games with Activision, but only if Vivendi kept majority control of the merged company. According to those close to Kotick, Kotick was concerned about this offer as it would force him to cede control of Activision. However, after talking to Blizzard’s CEO Mike Morhaime, Kotick recognized that Vivendi would be able to give them inroads into the growing video game market in China.

  • The EU is developing a long-term gaming and esports strategy while it also investigates Activision Blizzard’s $68.7B merger with Microsoft.
  • If approved, Activision Blizzard would become a division of Microsoft Gaming, making Microsoft the third largest gaming company .
  • In late July 2021, it was sued by the California Department of Fair Employment and Housing on allegations of sexual harassment and employee discrimination.
  • Moody’s Daily Credit Risk Score is a 1-10 score of a company’s credit risk, based on an analysis of the firm’s balance sheet and inputs from the stock market.
  • As of October 31st, there was short interest totaling 23,710,000 shares, an increase of 10.3% from the October 15th total of 21,490,000 shares.

Total Debt to Equity Ratio (D/E) can also provide valuable insight into the company’s financial health and market status. The Invest in Activision debt to equity ratio can be calculated by dividing the present total liabilities of a company by shareholders’ equity.

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To build technologies to create a virtual world called the metaverse. In fact, Microsoft CEO Satya Nadella was the first Big Tech CEO to publicly acknowledge the value of the metaverse, months before Meta CEO Mark Zuckerberg. Today, virtual worlds are dominated by gaming, but the hope is they expand to cater to other demographics and replace a lot of traditional social networking activity online. Under the deal, Activision CEO Bobby Kotick, who has faced calls to resign over the cultural problems within his company, will remain CEO during the transition. Microsoft said Activision as a company will report to Microsoft’s Xbox boss Phil Spencer after the deal closes, implying Kotick could depart after the transition. The Wall Street Journal reported Tuesday afternoon Kotick is expected to step down after the deal closes. The new Worlds, Inc. case against Activision Blizzard was heard on October 3, 2014.

Presently, Activision Blizzard Inc. shares are logging -15.17% during the 52-week period from high price, and 30.71% higher than the lowest price point for the same timeframe. The stock’s price range for the 52-week period managed to maintain the performance between $56.40 and $86.90. According to Kotick, this led to the idea of Microsoft, which does have those capabilities, acquiring Activision Blizzard at an attractive price point.

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These Buffett-backed stocks are strong buys on the heels of recent market volatility. Microsoft has gotten more aggressive with gaming over the past several years. And last year, Microsoft completed a $7.5 billion acquisition of game maker Bethesda. The price means Microsoft will pay $95 per share for Activision. Activision has been mired in controversy in recent months due to allegations of sexual harassment and misconduct among company executives. The inaugural Overwatch Grand Finals was played at the Barclays Center in Brooklyn in July 2018 and attracted 10.8 million viewers worldwide. The league hopes to have 18 teams competing during the second season in 2019, with the ultimate goal of 28 teams across the world.

The company has also been involved in multiple notable controversies, including allegations of infringed patents and unpaid royalties. In late July 2021, it was sued by the California Department of Fair Employment and Housing on allegations of sexual harassment and employee discrimination.

Activision stock

The P/E ratio of Activision Blizzard is 34.69, which means that it is trading at a more expensive P/E ratio than the Consumer Discretionary sector average P/E ratio of about 11.45. 78.78% of the stock of Activision Blizzard is held by institutions. High institutional ownership can be a signal of strong market trust in this company. Activision Blizzard has only been the subject of 3 research reports in the past 90 days.

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As of March 2018, it was the largest game company in the Americas and Europe in terms of revenue and market capitalization. Activision Blizzard saw a increase in short interest in October. As of October 31st, there was short interest totaling 23,710,000 shares, an increase of 10.3% from the October 15th total of 21,490,000 shares.

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Worlds, Inc.’s case presently remains at the Patent Office stage, which is re-reviewing the IPRs in consideration of the Federal Circuit’s ruling. The lawsuit was dismissed in 2021, when a US district court ruled that "Worlds’ patents were abstract ideas that were not sufficiently transformative to be legally patentable." In November 2016, Blizzard Entertainment, a subsidiary of Activision Blizzard, announced the launch of Overwatch League, a professional video gaming league.

Activision Blizzard seems to create the most significant positive value in categories "Taxes", "Meaning & joy", and "Creating knowledge". Price records that include history of low and high prices in the period of 52 weeks can tell a lot about the stock’s existing status and the future performance.


Bonus package he received in July 2021 following investors criticism on the size of the package. A Wall Street Journal report in November 2021 alleged that Kotick knew about misconduct and sexual harassment within the company without reporting them to the board of directors, leading to an increased pressure on Kotick to leave the company. The lawsuit became a debated matter in the industry as it touches on the Me Too movement and lack of unionization for video game developers to protect them from such mistreatment. Considering, the past performance of Activision Blizzard Inc., multiple moving trends are noted. Year-to-date Price performance of the company’s stock appears to be pessimistic, given the fact the metric is recording 11.17%. Additionally, trading for the stock in the period of the last six months notably deteriorated by -5.18%, alongside a boost of 6.13% for the period of the last 12 months.

The company’s average rating score is 2.42, and is based on 8 buy ratings, 11 hold ratings, and no sell ratings. Activision Blizzard’s third-quarter 2022 results reflect a negative impact from lower PC and console revenues besides a slow year so far for the gaming industry overall. Wedbush Managing Director of Equity Research Michael Pachter joins Yahoo Finance Live to discuss Take-Two earnings, the state of the gaming industry, and the outlook for Microsoft’s acquisition of Activ… In an interview with CNBC’s Becky Quick on "Squawk on the Street," Kotick said the deal came through what is an ATVI after he realized Microsoft had the technology to push Activision forward in the burgeoning competition between tech companies to build the metaverse. In the same interview, Spencer said talks about an acquisition began between the two companies late last year. However, U.S. regulators have signaled they will be far more aggressive in evaluating large acquisitions, especially in the tech industry, so there’s a chance the deal dies under government review. This would be Microsoft’s largest acquisition to date, followed by its purchase of LinkedIn in 2016 for $26.2 billion.

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