The deal will make Microsoft the third-largest gaming company by revenue.
Microsoft is planning to enter the Metaverse with its latest acquisition.
On Tuesday, software titan Microsoft Corp. announced plans to acquire game developer Activision Blizzard Inc.
One of Activision’s well-known game franchises is Call of Duty. Through this strategic acquisition, Microsoft will get many other iconic franchises from the Activision, Blizzard and King studios like “Warcraft,” “Diablo,” “Overwatch,” and “Candy Crush”.
This deal will catapult Microsoft’s position in the gaming business across mobile, PC, console and cloud and ultimately set a foundation for its entry into Metaverse space.
It is an all-cash transaction at $95.00 per share of Activision Blizzard with a total value of $68.7 billion.
“Gaming is the most dynamic and exciting category in entertainment across all platforms today and will play a key role in the development of metaverse platforms. We’re investing deeply in world-class content, community and the cloud to usher in a new era of gaming that puts players and creators first and makes gaming safe, inclusive and accessible to all.”Satya Nadella, Chairman and CEO at Microsoft
As claimed in the announcement, Microsoft will become the third-largest gaming company by revenue, behind Tencent and Sony, after the acquisition completes.
Traditional Companies are Flocking to Metaverse
Lately, many traditional companies have entered the Metaverse space.
Last week it was reported that Walmart has entered the space. In December, Nike made a strategic acquisition of a startup that creates digital sneakers backed by Non-Fungible Tokens (NFT). The sports manufacturer has even created NIKELAND in Metaverse.
This could be driven by the fear of missing out (FOMO) and getting the first-mover advantage in order to beat the competition. Metaverse is being seen as the successor of social media. That’s why Facebook also rebranded itself to Meta to exhibit the change in its long term vision.
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