Rajkotupdates.news: Microsoft gaming company to buy Activision blizzard for rs 5 lakh crore
rajkotupdates.news : Microsoft gaming company to buy Activision blizzard for rs 5 lakh crore: In an unprecedented move, gaming company Microsoft has announced its plan to acquire Activision Blizzard for Rs 5 lakh crore, which is set to revolutionize the gaming industry. This merger of the two giants is expected to create an unmatched gaming behemoth.
By acquiring Activision Blizzard, Microsoft is not only expanding its gaming portfolio but also strengthening its position in the market. With Activision Blizzard’s acquisition of the hugely popular franchise, Microsoft intends to enhance its offerings and provide a more diverse selection of gaming experiences for its global audience.
Microsoft Acquires Activision Blizzard For Rs 5 lakh crore
Microsoft’s latest acquisition of Activision Blizzard is set to cost $68 billion, or roughly Rs 5 lakh crore, an astonishing amount that would make it the second most significant buyout in the company’s history, second only to its purchase of Activision Blizzard. LinkedIn was bought for $ 26.2 billion, or about Rs 2 lakh crore. As a result of this massive deal, Microsoft has overtaken Nintendo to claim third place among the world’s leading gaming companies, behind only Tencent and Sony.
Activision Blizzard, the gaming powerhouse behind some of the world’s most popular games such as Candy Crush, Call of Duty, and Tony Hawk’s Pro Skate, has been embroiled in controversy over the past few months, primarily involving employee mistreatment. The acquirer will report to the company, Phil Spencer, head of Microsoft’s Xbox division. While Bobby Kotick, Activision’s current CEO, is expected to remain in his role for some time, according to some reports, he will eventually leave his position.
Microsoft’s stock price of $95 per share, equivalent to Rs 7000, is a substantial investment for the company to buy Activision and has sparked intense interest from market observers around the world. Despite the controversies surrounding Activision, there’s no denying the fact that Microsoft’s acquisition of the gaming giant represents a significant change in the tech landscape, one that could have far-reaching implications for the future of the gaming industry.
Why Is This Acquisition Important For Microsoft?
Microsoft is vigorously strengthening its position in the gaming industry, and the latest acquisition of Activision Blizzard is the most important step in this regard.
It is worth mentioning that Microsoft has been making aggressive moves in the gaming industry for some time now. In 2014, they acquired Mojang, the developers of Minecraft, for $2.5 billion. And, in 2021, he bought Bethesda for $7.5 billion.
In addition to its gaming activities, Microsoft has also set its sights on competing against Meta (formerly known as Facebook), especially with Meta’s aggressive plans to expand its metaverse. Microsoft is keen to grab a piece of this pie for itself.
Notably, Microsoft already offers a highly advanced augmented reality headset called HoloLens. With the acquisition of Activision, we can expect Microsoft to innovate and bring more excitement to the gaming and AR/VR niche.
The Rationale Behind the Acquisition: Strategic and Financial Benefits
The acquisition of Activision Blizzard by Microsoft’s gaming company for Rs 5 lakh crore is a significant step in the technology and gaming industry. The rationale behind this acquisition lies in the strategic and financial benefits that Microsoft can derive from it.
First, Microsoft will get access to some of the most popular gaming franchises, including Call of Duty, World of Warcraft, and Candy Crush Saga. This would enable Microsoft to strengthen its position in the gaming industry and become more competitive against rivals such as Sony and Nintendo.
Secondly, this acquisition would allow Microsoft to expand its presence in mobile gaming beyond consoles due to the expertise of King Digital Entertainment. This will enable Microsoft to tap into the rapidly growing market and reach a wider audience.
Third, the acquisition gives Microsoft a potential advantage over game streaming services such as Google Stadia or Amazon Luna. This could result in increased revenue streams and more opportunities for Microsoft to expand its gaming offerings.
Finally, from a financial perspective, this acquisition is expected to be highly profitable for Microsoft, thanks to Activision Blizzard’s strong revenue streams. With $8 billion in annual revenue generated by franchises like Call of Duty alone, this acquisition makes sense for Microsoft.