Microsoft Corp. (NASDAQ: MSFT) is continuing its acquisition of video game publisher Activision Blizzard. So far, the agreement has not been approved by all regulators, but if it is, MSFT would gain significant benefits in the gaming business.
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Activision Blizzard’s almost $70 billion purchase began in January 2022 and is now being authorised by regulators throughout the world.
The first affirmative answer came from Saudi Arabia last week, and Microsoft Corp. (MSFT) is now expecting clearance from additional areas, including the United States, United Kingdom, and Europe. Each of these zones has the authority to either stop the transaction or add new conditions. The transaction was supposed to be completed in mid-2023, according to the original plan.
If Activision Blizzard and Microsoft’s agreement is authorised, the latter will be one of the top three worldwide video game producers. Tencent and Sony are the current leaders, with MSFT behind Apple in fourth position.
Remember that Activision Blizzard owns several prominent gaming brands, including Call of Duty, the world’s second best-selling video game series. As of 2021, 400 million copies had been sold, falling just shy of Tetris’ all-time high of 496 million.
Activision Blizzard stated in 2021 that the Call of Duty series had made around $27 billion since 2003. Overall, Activision’s Blizzard game catalogue has the potential to outperform Microsoft Corp. (MSFT)’s already popular game subscription programme, Xbox Game Pass. Since its inception in 2017, the service has expanded to 25 million members.
According to Wall Street analysts, this division might earn $4 billion in sales by the end of 2022. However, a game as popular as Call of Duty, as well as other Activision Blizzard games, might enhance the service’s appeal even more.
Microsoft Corporation (NASDAQ: MSFT) stock has dropped -5.19% in the last week, but is down -4.02% in the previous quarter. Going back further, the stock’s price has down -12.90% in the previous six months but is down -22.26% year to date.
