Thanks to the metaverse, the gaming industry continues to hit headlines. Today's video focuses on Microsoft (MSFT 1.16%) and its current plans to acquire Activision Blizzard (ATVI +0.00%). This acquisition will improve the gaming catalog Microsoft offers, but more importantly, it can help shape Activision's work environment. Here are some highlights from the video.
- Microsoft is expected to pay $68.7 billion for Activision in an all-cash deal, which equates to roughly $95 per Activision share. The deal is expected to close during Microsoft's 2023 fiscal year, which could be anywhere within the next six to 18 months.
- Microsoft will gain a strong gaming catalog including World of Warcraft, Hearthstone, Overwatch, Call of Duty, and, more importantly, numerous mobile titles, this being a market Microsoft gaming has limited exposure to. Microsoft sees this opportunity to increase its cloud gaming subscription Xbox Gamepass, which currently has over 25 million subscribers.
- The work culture at Activision has experienced numerous adverse events, which may have made new talent reluctant to seek employment there. With Microsoft being the head of Activision, I believe the work environment could improve.
Click the video below for my full thoughts and analysis.
*Stock prices used were the midday prices of Jan. 19, 2022. The video was published on Jan. 19, 2022.
