Microsoft will pay $95 per share for Activision Blizzard, which is almost 45% more than the company’s share price.
According to analysts, Microsoft is going to purchase game publisher Activision Blizzard in an all-cash transaction that will enhance the trillion-dollar company’s metaverse goals.
According to David Nage, portfolio manager at digital-assets investment firm Arca, Microsoft’s aspirations for the metaverse are expanding.
“Over the course of the last few quarters [Microsoft] has been aggressively building out into the metaverse. A very large part of their business line is Xbox gaming and so immediately I thought that this had some sort of semblance or focus on the metaverse.”
In a statement on Tuesday, Microsoft described the acquisition as a strategy to accelerate the expansion of Microsoft’s gaming business and supply building blocks for the metaverse. Chief Executive Officer Satya Nadella said:
“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, which develops Xbox consoles and Minecraft, will pay $95 per share for Activision, a 45% premium.
The software giant will obtain hit game titles such as Call of Duty and Candy Crush as a result of the acquisition. When the purchase is completed, the company will be the third-largest gaming firm in terms of revenue.
When Nadella first introduced the phrase “metaverse” during the company’s annual conference in November 2021, he made waves. Nadella stated that the software giant will release over 100 new services and improvements in three domains, including the metaverse. The company is also planning to offer its very own virtual reality goggles and gloves later this year.
The acquisition comes as Activision has faced many charges of sexual harassment and gender inequity, which culminated in a complaint from California regulators in July 2021 for encouraging a culture of “constant sexual harrassment.”
According to those familiar with the situation, Activision CEO Bobby Kotick is anticipated to leave the firm when the acquisition complete.
Nage thinks that the software company would use Activision assets to explore with non-fungible tokens in its video games, and that the corporation will eventually “build a robust metaverse.”
“I think this is just the start of Microsoft’s adventure into play-to-earn gaming. Microsoft will start to look beyond Activision Blizzard and into some of the [blockchain-based] games that are starting to evolve today … I think they will start to incorporate some of [those] into their own metaverse.”
Join CoinCu Telegram to keep track of news: https://t.me/coincunews