Thanks to the metaverse, the gaming industry continues to hit headlines. Today's video focuses on Microsoft (MSFT 0.37%) and its current plans to acquire Activision Blizzard (ATVI). 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.
