Legendary gaming, immersive interactive entertainment, and publishing expertise will accelerate Microsoft's gaming business growth in mobile, PC, console, and cloud.
REDMOND, WA and SANTA MONICA, Calif., Jan. 20, 2022 /PRNewswire/ -- With 3 billion people actively playing games today, a new generation is immersed in the endless fun of interactive entertainment, gaming has become the largest and fastest-growing form of entertainment. Today, Microsoft Corporation (MICROSOFT Corp., NASDAQ: MSFT) announced plans to acquire Activision Blizzard Inc. (NASDAQ: ATVI), a leader in game development and interactive entertainment content. The acquisition will accelerate the growth of Microsoft's gaming business in the mobile, PC, console and cloud segments, and will provide building blocks for the metacosm.
Microsoft announced plans to acquire Activision Blizzard, a game development leader and publisher of interactive entertainment content. The planned acquisitions include Autovision, Blizzard and King Studios' iconic franchises such as Warcraft, Diablo, Overwatch, Call of Duty and Candy Crush Saga.
Microsoft will acquire Activision Blizzard at $95.00 per share, an all-cash deal worth $68.7 billion, including activision Blizzard's net cash When completed, Microsoft will become the world's third-largest game company in terms of revenue after Tencent and Sony, in addition to global esports activities through Major League Pro, and the planned acquisitions also include iconic franchises such as Autovision, Blizzard and King Studios, such as Warcraft, Diablo, Overwatch, Call of Duty, and Candy Crush Saga have studios around the world with nearly 10,000 employees
Bobby Kotick will continue as CEO of Activision Blizzard, and he and his team will continue to focus on driving work to further strengthen the company's culture and accelerate business growth After the transaction is complete, Activision Blizzard's business will report to Microsoft Gaming CEO Phil Spencer.
Satya Nadella, Chairman and CEO of Microsoft, said: "Gaming is the most dynamic and exciting category in the entertainment space of all platforms today and will play a key role in the development of metaversal platforms We are making deep investments in world-class content, communities and the cloud to usher in a new era of gaming that puts players and creators first and makes gaming secure, inclusive and accessible."
Phil Spencer, CEO of Microsoft Games, said: "Players around the world love Activision Blizzard and we believe the creative team has presented the best for players And together we will build a future where people can play the games they want wherever they want."
Bobby Kotick, CEO of Activision Blizzard, said: "For more than 30 years, our talented team has created some of the most successful gaming Activision Blizzard's world-class talent and extraordinary franchises combined with Microsoft's technology, distribution, talent channels, ambition and shared commitment to gaming and inclusion that will help ensure our continued success in an increasingly competitive industry."
Mobile is the largest segment of the gaming space, nearly 95% of players worldwide play on mobile through excellent teams and superior technology, Microsoft and Activision Blizzard will enable players to enjoy the most immersive franchises such as Halo and Warcraft wherever they want it.
The acquisition also solidifies Microsoft's Game Pass portfolio with plans to launch Activision Blizzard games into game Pass, which has reached a new milestone of more than 25 million subscribers with activision Blizzard's monthly franchise of nearly 400 million active players and $3 billion in 190 countries and territories, and the acquisition will make Game Pass one of the most compelling and diverse lineups of game content in the industry After the transaction is completed, Microsoft will have 30 in-house game development studios, as well as additional publishing and esports production capabilities.
The transaction is subject to customary closing conditions, completion of regulatory review and approval by Activision Blizzard shareholders The transaction is expected to close in fiscal year 2023 and an increase in non-GAAP earnings per share at the close of the transaction The transaction has been unanimously approved by the boards of directors of Microsoft and Activision Blizzard.
consultant Goldman Sachs & Co. acted as financial counsel to Microsoft and Simpson Thacher & Bartlett LLP as legal counsel. Allen & Company LLC serves as Activision Blizzard's financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP as legal counsel. net Details of the webcast Microsoft Chairman and CEO Satya Nadella, Activision Blizzard CEO Bobby Kotick, Microsoft Gaming CEO Phil Spencer and Microsoft Chief Financial Officer Amy Hood will host a webcast of the deal for investors and media on January 18, 2022, at 6 a.m. Pacific Time or 9 a.m. Et.- United States: (877) 407-0666 (no password required)
- International: (no password required)
- Webcast:
A recording of the meeting will be available shortly after the end of the conference call, which will be available to be accessed on Friday, January 28, 2022 at 5:00 p.m. Pacific Time:
- United States: (877) 660-6853
- International: +1 (201) 612-7415
- Conference ID: 13726291
For more information, please visit Microsoft Gaming CEO Phil Spencer's blog post with images available for broadcast-level behind-the-scenes footage and audio, please contact.
Quick facts about the game
- The game industry, worth more than $200 billion, is the largest and fastest-growing entertainment industry.
- In 2021 alone, total video game distributions grew by 64 percent compared to 2020, and 51 percent of U.S. gamers said they spent more than 7 hours a week playing on consoles, PCs, and mobile phones.
- There are 3 billion people playing games worldwide today, and we expect that to grow to 4.5 billion by 2030.
- More than 100 million players, including more than 25 million Xbox Game Pass members, play Xbox games on consoles, PCs, phones and tablets every month.
Microsoft (NASDAQ: MSFT) has enabled digital transformation in the era of intelligent cloud and intelligent edge, and its mission is to achieve every person and every organization on the planet.
concerning Activision BlizzardOur mission–connecting and interacting with the world through epic entertainment has never been more important. By being rooted in the diverse communities of our video game franchises, we enable hundreds of millions of people to indulge in joy, excitement and fulfillment. We build social connections through an entertaining perspective and cultivate purpose and meaning through competitive games. Unlike any other social or entertainment medium, video games are able to break down barriers to tolerance and understanding. Embracing differences is at the heart of our culture and ensuring we are able to create games for players of all backgrounds in 190 countries and regions.
As a Fortune 500 member and s&P 500 affiliate, we have an extraordinary track record of delivering exceptional shareholder returns For example, our Call of Duty Endowment has helped find employment opportunities for more than 90,000 veterans.
Learn more about Activision Blizzard through the company's website and how we connect and interact with the world through epic entertainment:
Forward-looking statementThis presentation contains certain forward-looking statements within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995 regarding the proposed transaction and business merger between Microsoft and Activision Blizzard, including statements regarding the interests in the transaction, the expected timing of the transaction, and the products and markets of the companies These forward-looking statements are generally identifiable by the following words: "believes," "estimates," "estimates," "budgets," "forecasts," "continues," "expects," "estimates," "intends," "Strategy", "future", "opportunity", "plan", "may", "should", "will", "will", "continue", "may arise" and similar words (including negative versions of these words or phrases) Forward-looking statements are predictions, projections and other statements based on current expectations and assumptions about future events and are therefore subject to various risks and uncertainties Many factors may cause actual future events to differ materially from the forward-looking statements in this press release, Including, but not limited to: (i) the risk that the transaction may not be completed in a timely manner or may not be completed at all, which may adversely affect Activision Blizzard's business and the price of Activision Blizzard's common stock (ii) fail to meet the conditions for completing the transaction, including Activision Blizzard shareholders through merger agreements and obtain certain governmental and regulatory approvals, (iii) the occurrence of any event, change or other circumstances that could lead to the termination of the merger agreement, (iv) the announcement of the transaction or the pending business relationship with Activision Blizzard, Results of Operations and Impact on Business (v) Risk of the Proposed Transaction disrupting Activision Blizzard or Microsoft's current plans and operations, and the risk of the Transaction causing retention difficulties for potential Activision Blizzard employees (vi) risks associated with diverting management's attention to Activision Blizzard's ongoing business operations, (vii) the outcome of any legal action that may be brought against Microsoft or Activision Blizzard in connection with the merger agreement or transaction, (viii) Microsoft's successful integration of Activision Blizzard operations, Capabilities of product lines and technologies and (ix) Microsoft's ability to implement its plans, forecasts and other expectations for the Activision Blizzard business and to realize additional growth and innovation opportunities after the completion of the proposed merger In addition, please refer to Microsoft and Activision Blizzard in Tables 10-K, 10- Documents filed with the SEC by Q and 8-K These documents identify and address other material risks and uncertainties that could cause events and outcomes to differ materially from the forward-looking statements contained in this press release These forward-looking statements are valid only Readers should not place undue reliance on these forward-looking statements, and Microsoft and Activision Blizzard have no obligation or any plans to update or modify the forward-looking statements for new information, future events or otherwise.
Additional information and its Find the locationIn connection with this transaction, Activision Blizzard will submit relevant materials to the SEC, including the proxy statement in Schedule 14A After filing a final proxy statement with the SEC, Activision Blizzard will send a final proxy statement and proxy card to each shareholder entitled to vote at a special meeting related to this transaction We urge Activision Blizzard's investors and securities holders to read these materials (including any amendments or additions thereto) and any other relevant documents that Activision Blizzard will submit to the SEC in connection with this transaction after they become available, Because these documents will contain important information about Activision Blizzard and the Transaction, the final proxy statement, preliminary proxy statement and other relevant materials related to the transaction (once available), as well as any other documents submitted by Activision Blizzard to the SEC, may be obtained free of charge by visiting the SEC website or the Activision Blizzard website or by writing to Activision Blizzard Investor Relations (Address: 3100 Ocean Park Boulevard, Santa Monica, California, 90405）。
Activision Blizzard and some of its directors and officers, as well as other members of management and employees, may be deemed to be involved in the solicitation of proxy statements from Activision Blizzard shareholders in connection with this transaction information about Activision Blizzard directors and officers and their holdings of Activision Blizzard's common stock in connection with this transaction, as set forth in Activision Blizzard's power of attorney filed with the SEC on April 30, 2021 in Schedule 14A, if Activision Blizzard's holding of securities automatically depends on the amount printed in Blizzard's power of attorney, Information about the identity of the participant and their direct or indirect interest in the transaction through the holding of securities or otherwise in the statement of change of ownership that has been or will be reflected in the statement of change of ownership in Form 4 filed with the SEC will be set forth in the power of attorney and other materials to be filed with the SEC in connection with the transaction.