What is Activision Blizzard known for? Microsoft is buying Activision

Activision Blizzard, Inc. is an American video game holding company based in Santa Monica, California.

What is Activision Blizzard known for

The company was founded in July 2008 through the merger of Activision, Inc. (the publicly traded parent company of Activision Publishing) and Vivendi Games.

The company is traded on the NASDAQ stock exchange under the ticker symbol ATVI, and since 2015 has been one of the stocks that make up the S&P 500.

Activision Blizzard currently includes five business units: Activision Publishing, Blizzard Entertainment, King, Major League Gaming, and Activision Blizzard Studios.

Microsoft has announced on January 18, 2022 that it will buy video game giant Activision Blizzard in a $68.7 billion all-cash deal.

Microsoft to acquire Activision Blizzard in all-cash deal valued at $68.7 billion to mark its biggest-ever deal

Microsoft Corp. MSFT, -1.09% said Tuesday it has reached an agreement to acquire Activision Blizzard Inc. ATVI, 29.52% in an all-cash deal valued at $68.7 billion that will be the biggest ever by the software giant. Microsoft will pay $95 per Activision share to create the world’s third-biggest gaming company measured by revenue, behind Tencent and Sony. The deal includes franchises “Warcraft,” “Diablo,” “Overwatch,” “Call of Duty” and “Candy Crush,” in addition to global eSports activities through Major League Gaming, the companies said in a joint statement. The deal is expected to close in fiscal 2023. Activision will continue to be led by CEO Bobby Kotick and his management team, who have come under criticism for their handling of misconduct by some of the company’s employees. “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,” said Satya Nadella, chairman and CEO of Microsoft. Microsoft shares fell 1.8% premarket on the news. Activision shares were halted for the news, but had gained 37.6% before the halt was announced. Last week, Take-Two Interactive Inc. TTWO, 1.94% announced its acquisition of Zynga Inc. ZNGA, 0.61% in a $12.7 billion cash-and-stock deal.

In its largest purchase ever, Microsoft will pay $95 a share in cash for one of the U.S.’s biggest gaming publishers, known for titles like Call of Duty and World of Warcraft but which is also grappling with a cultural upheaval over its treatment of women. Activision Chief Executive Officer Bobby Kotick will continue to serve in that role, Microsoft said. Once the deal closes, the Activision Blizzard business will report to Phil Spencer, who heads Microsoft Gaming.

Activision Blizzard

The company owns and operates additional studios under an independent studios model under Activision Publishing, including Treyarch, Infinity Ward, High Moon Studios, and Toys for Bob.

Among major intellectual properties produced by Activision Blizzard are Call of Duty, Crash Bandicoot, Guitar Hero, Tony Hawk’s, Spyro/Skylanders, World of Warcraft, StarCraft, Diablo, Hearthstone, Heroes of the Storm, Overwatch, and Candy Crush Saga. Under Blizzard Entertainment, the company has invested into esports initiatives around several of its games, most notably Overwatch and Call of Duty. Activision Blizzard’s titles have broken a number of release records.

As of March 2018, it is the largest game company in the Americas and Europe in terms of revenue and market capitalization.

The company has also been involved in multiple notable controversies, including allegations of infringed patents and unpaid royalties.

In late July 2021, the company was sued by the California Department of Fair Employment and Housing on allegations of sexual harassment and employee discrimination.

The suit triggered an investigation by the U.S. Securities and Exchange Commission, multiple workplace walkouts, the resignation or dismissal of several employees, the loss of multiple company event sponsors, and the company continuing to receive hundreds of workplace harassment allegations.

Microsoft announced its intent to acquire Activision Blizzard on January 18, 2022, which would make it a division of Xbox Game Studios.

Who is the CEO of Activision Blizzard?

who is Bobby Kotick?

Robert A. Kotick is an American businessman who serves as the chief executive officer (CEO) of Activision Blizzard.

He became CEO of Activision in 1991 after purchasing a company stake the previous year. Kotick engineered a merger between Activision and Vivendi Games during the late 2000s, which led to the creation of Activision Blizzard in 2008 and him being named the company’s inaugural CEO. He has also served on several boards, including The Coca-Cola Company since 2012 and the Call of Duty Endowment (CODE), which he co-founded in 2009. From 2003 to 2008, Kotick was a director at Yahoo!.

5 Companies Owned by Activision Blizzard

Video game developers for mobile devices, PCs, and consoles

Activision Blizzard Inc. (ATVI) is a global entertainment company that, through subsidiaries, develops and publishes entertainment content, video games, and related services. The company was formed by the 2008 merger of Activision Inc. and Blizzard Entertainment (a part of Vivendi at the time of the merger) and is known for industry-defining franchises that include World of Warcraft, Call of Duty, Diablo, and Candy Crush.1

Activision Blizzard develops and distributes video games and other services on mobile devices, game consoles, and personal computers. It also generates revenue through esports leagues and sells digital advertising and in-game content. The company operates across three primary segments: Activision, Blizzard, and King.2

Activision rapidly expanded in the video game industry through a series of prominent acquisitions before merging with part of Vivendi to form Activision Blizzard. Since the formation of Activision Blizzard in 2008, the pace of acquisitions has slowed. Activision Blizzard is one of the biggest players in the industry, with 2020 net revenue of $8.1 billion and net income of $2.2 billion.3 Its market capitalization was $71.6 billion as of July 9, 2021.

we look in detail at five of Activision Blizzard’s most important acquisitions, beginning with key deals by Activision before the merger.

Raven Software

Type of business: Video game developer
Acquisition price: Not available
Date purchased: August 19974

Infinity Ward

Type of business: Video game developer
Acquisition price: Undisclosed; estimated at $5 million7
Date purchased: Oct. 30, 20038

Treyarch Invention

Type of business: Video game developer
Acquisition price: Estimated $20 million10
Date purchased: Announced Oct. 2, 200111

Activision-Blizzard Merger

Type of business: Merger between video game developers
Acquisition price: Combined companies valued at $18.9 billion12
Date purchased: Announced Dec. 2, 2007; completed July 10, 20081314
Most recent yearly revenue (2020): Activision $3.9 billion and Blizzard $1.9 billion15
Most recent yearly profit (2020): Activision $1.9 billion in operating profit and Blizzard $693 million16

King Digital

Type of business: Video game developer
Acquisition price: $5.9 billion19
Date purchased: Feb. 23, 201619
Most recent yearly revenue (2020): $2.2 billion16
Most recent yearly profit (2020): $857 million16

After the giant Activision Blizzard merger in 2008, the combined company slowed the pace of its acquisitions. However, one major deal has allowed Activision Blizzard to expand into a new market segment. By purchasing mobile game developer King Digital, maker of the popular Candy Crush series, Activision Blizzard stepped into the rapidly growing world of mobile gaming.

Will Blizzard split from Activision?

Blizzard is already separate from Activision. Activision Blizzard King is the holding company for Activision Publishing Inc, Blizzard Entertainment, and King Digital.

Does Blizzard own Activision?

After several years of rapid expansion through acquisitions of smaller game developers, Activision merged with Blizzard Entertainment in 2008 to create Activision Blizzard, forming one of the world’s largest video game companies.

Who is Activision owned by?

Activision Blizzard. Activision Publishing, Inc. is an American video game publisher based in Santa Monica, California.

Who is bigger EA or Activision?

EA had net revenue of 5.537B in 2020. Activision had 8.086B in 2020. Again, Activision is larger but a good margin (but not double.)