Microsoft Corp is buying "Call of Duty" maker Activision Blizzard for $68.7 billion in the biggest gaming industry deal in history as global technology giants stake their claims to a virtual future.
Summary
- It also represents the American multinational’s bet on the “metaverse,” virtual online worlds where people can work, play and socialize, as many of its biggest competitors are already doing.
- The deal comes at a time of weakness for Activision, maker of games such as “Overwatch” and “Candy Crush”.
- ‘METAVERSE ARMS RACE’Data analytics firm Newzoo estimates the global gaming market generated $180.3 billion of revenues in 2021, and expects that to grow to $218.8 billion by 2024.
- According to Newzoo, Microsoft’s gaming market share was 6.5% in 2020 and adding Activision would have taken it to 10.7%.
- According to Refinitiv data, the Microsoft-Activision deal would be the largest all-cash acquisition on record, trumping Bayer’s $63.9 billion offer for Monsanto in 2016 and the $60.4 billion that InBev bid for Anheuser-Busch in 2008.