Shares of Activision Blizzard were halted in pre-market trading on Tuesday after Microsoft announced plans to acquire the gaming giant in a $68.7 billion deal. Microsoft Corp shares were down to 1.00 per cent at the $307.10 (−3.10) (1.00%) today on NASDAQ. On the other hand, Activision Blizzard shares skyrocketed by 30.44 per cent at the US $85.30(+19.90) after Microsoft made the announcement.
This deal is anticipated to be Microsoft’s largest acquisition to date, followed by its purchase of LinkedIn in 2016 for $26.2 billion. The deal is anticipated to happen at US 90 dollars a share this is a stock that closed at USD 65.39 on Friday. Shares of Activision flew about 31% Tuesday morning following the news. Microsoft shares slipped almost 2% following the statement.
Today is a historic moment. We are excited to announce that the world-renowned franchises and talented people at @ATVI_AB will be joining Team Xbox!
— Xbox (@Xbox) January 18, 2022
Earlier, the maker of popular games such as Call of Duty and Tony Hawk’s Pro Skater has been dragged into controversy because of reports of sexual misconduct and harassment among the company’s executives. On Monday, Activision said it fired dozens of executives after an investigation.
Microsoft stated that Activision Blizzard CEO Bobby Kotick will posit the same role as before. Once the deal locks, Kotick will report to Phil Spencer, CEO of Microsoft Gaming.
“Players everywhere love Activision Blizzard games, and we believe the creative teams have their best work in front of them,” Spencer said in a statement. “Together we will build a future where people can play the games they want, virtually anywhere they want,” he added.
“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,” Microsoft chairman and CEO Satya Nadella said in announcing the Activision Blizzard pact. “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,” he added.
Under the offered agreement, Microsoft will disburse $95/share for Activision Blizzard, a 45% dividend over its previous closing price. Activision Blizzard’s stock shot up more than 33% in premarket trading.
Activision Blizzard, Inc. is an American video game holding company based in Santa Monica, California. The company was founded in July 2008 through the merger of Activision, Inc. and Vivendi Games.