Microsoft Buys Activision Blizzard as Part of Five Biggest Acquisitions of 2022
January 8, 2023
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ACTIVISION BLIZZARD ($NASDAQ:ATVI) is a leading interactive entertainment company that creates, publishes, and distributes content and services on a variety of platforms. It is the world’s largest and most successful interactive entertainment company, with a portfolio of award-winning franchises such as Call of Duty, World of Warcraft, Diablo, StarCraft, Guitar Hero, Tony Hawk’s Pro Skater, and Crash Bandicoot. In 2022, Microsoft acquired Activision Blizzard in one of the five biggest acquisitions of the year. The other four acquisitions included Elon Musk’s Twitter acquisition, and three more yet to be determined. For Microsoft, this acquisition was a strategic move to strengthen their presence in the gaming market. The acquisition was a major benefit for both companies. For Microsoft, it gave them access to the gaming industry’s top franchises and the chance to expand their reach in the gaming market.
For Activision Blizzard, the deal provided them with financial security and access to a larger platform. The acquisition gave Microsoft access to some of the most successful franchises in the gaming industry and allowed them to expand their presence in the gaming market. For Activision Blizzard, the acquisition provided them with financial security and access to a larger platform. The acquisition was beneficial for both companies and provided them with an opportunity to increase their market share and expand their reach in the gaming industry. It also allowed both companies to benefit financially from the deal and provided them with the opportunity to capitalize on the success of their respective franchises.
Stock Price
This move is part of the tech giant’s five biggest acquisitions of the year, and comes on the heels of their purchase of Zenimax Media and its parent company Bethesda Softworks. Immediately following the news, ACTIVISION BLIZZARD stock opened at $76.6 and closed at $76.9, up by 0.4% from its previous closing price of 76.6. The merger of Microsoft and Activision Blizzard is expected to shake up the gaming industry by providing gamers with more access to top-tier gaming titles across platforms. Microsoft plans to integrate its Xbox Game Pass subscription service into Activision Blizzard’s gaming lineup, allowing players to access a larger library of titles than ever before. The two companies have already begun discussing ways to collaborate on game development, and Microsoft will also provide marketing and distribution support for Activision Blizzard’s titles.
Microsoft is also looking to use Activision Blizzard’s technology and intellectual property in its new ventures, such as cloud gaming and artificial intelligence. The acquisition has been met with enthusiasm by corporate investors, as analysts predict that the combined power of Microsoft and Activision Blizzard will benefit both companies in the long run. It is clear that this deal will have a lasting impact on the gaming industry, and it will be interesting to see how Microsoft and Activision Blizzard collaborate in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Activision Blizzard. More…
| Total Revenues | Net Income | Net Margin |
| 7.36k | 1.67k | 23.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Activision Blizzard. More…
| Operations | Investing | Financing |
| 1.76k | -3.15k | -461 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Activision Blizzard. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 25.62k | 6.81k | 24.03 |
Key Ratios Snapshot
Some of the financial key ratios for Activision Blizzard are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 2.2% | 1.0% | 27.6% |
| FCF Margin | ROE | ROA |
| 22.7% | 6.9% | 5.0% |
VI Analysis
Investors looking for strong, stable, and consistent cashflows should consider Activision Blizzard. The company’s strong fundamentals, as evidenced by the VI Star Chart, are reflected in its asset, dividend, and profitability strengths. Its weak growth potential is counterbalanced by a high health score of 10/10 with regard to cashflows and debt, making it well-equipped to sustain operations in times of crisis. Given its strong fundamentals and reliable cashflows, Activision Blizzard is classified as a ‘cow’ – a type of company that has a track record of paying out consistent and sustainable dividends. As such, it may be of particular interest to investors looking for dividend income, as well as those seeking a safe investment with long-term potential. Furthermore, its sound financials may also be appealing to those seeking a reliable source of capital appreciation. Overall, Activision Blizzard is an attractive option for investors who are looking for a safe and secure investment with long-term potential. Its strong fundamentals, reliable cashflows, and high health score make it an ideal choice for those seeking a dependable source of income and capital appreciation. More…
VI Peers
The company has a strong portfolio of video game franchises and continues to innovate in the gaming space. While its competitors are also strong in the gaming industry, Activision Blizzard has a history of success and a bright future.
– Take-Two Interactive Software Inc ($NASDAQ:TTWO)
Take-Two Interactive Software, Inc. is a holding company, which engages in the provision of entertainment products and services. It operates through the following segments: Publishing, Distribution, and Other. The Publishing segment refers to the development, marketing, and sale of software products and content through physical retail, digital download, online platforms, and cloud streaming services. The Distribution segment comprises of the third-party distribution of physical retail products and digital downloads of games and add-on content. The Other segment covers licensing and management fees, royalties, and other non-operating income. The company was founded by Ryan Brant and Jeffrey D. Lapin on September 24, 1993 and is headquartered in New York, NY.
– Electronic Arts Inc ($NASDAQ:EA)
Electronic Arts Inc is a leading global interactive entertainment software company. The Company develops, publishes, and distributes interactive software worldwide for video game systems, personal computers, cellular handsets and the Internet.
As of 2022, Electronic Arts Inc has a market cap of 35.66B and a Return on Equity of 10.3%. The company is a leading global interactive entertainment software company and develops, publishes, and distributes interactive software worldwide for video game systems, personal computers, cellular handsets and the Internet.
Summary
In 2022, Microsoft made one of the largest acquisitions of the year by purchasing Activision Blizzard. This move has been seen as a big investment into the growing online gaming industry and has been met with positive investor sentiment. Analysts believe that Activision Blizzard’s portfolio of successful franchises such as Call of Duty, World of Warcraft, and Overwatch will allow Microsoft to capitalize on the continued growth of the gaming market.
With the acquisition, Microsoft will gain access to new gaming innovations and a large user base. This strategic move is expected to create a strong position for Microsoft in the industry and create long term value for shareholders.
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