Microsoft Completes $68.7B Acquisition of Activision Blizzard

Microsoft finalized its $68.7 billion acquisition of Activision Blizzard on October 13, 2023, marking the most expensive transaction in the history of the gaming industry. The deal, which was originally announced on January 18, 2022, faced significant regulatory scrutiny that delayed its completion beyond the initial June 2023 target. The final hurdle was cleared following approval from the British Competition and Markets Authority, which was secured after Microsoft established a licensing agreement regarding cloud streaming rights with Ubisoft.

The acquisition resulted in the resignation of Activision Blizzard’s board of directors and CEO Robert “Bobby” Kotick. While Kotick stepped down from his executive position, he remained with the company through the end of 2023 to assist with the transition under the leadership of Microsoft Gaming CEO Phil Spencer. Following the merger, Microsoft initiated the process of integrating Activision Blizzard’s game library into the Game Pass subscription service and other platforms.

The transaction involved the delisting of Activision Blizzard stock from the Nasdaq. Shareholders received a merger consideration of $95.00 per share, concluding a period of high volatility for the stock, which had fluctuated significantly throughout the lengthy regulatory review process. This acquisition represents a major consolidation in the global gaming sector, surpassing the previous record set by Take-Two’s $12.7 billion acquisition of Zynga.