Microsoft Makes The Biggest Tech Deal In History After Snaring Activision Blizzard

Microsoft Makes The Biggest Tech Deal In History After Snaring Activision Blizzard

Microsoft has made the largest tech deal in history with its acquisition of Activision Blizzard. 

The company purchased game developer Activision Blizzard, for $US69 billion ($A96 billion).

This deal is the highest price ever paid by a U.S tech company in an acquisition. 

Previously the biggest deal was when Dell purchased EMC for $US67billion ($A93billion) in 2016. 

As previously reported by B&T, Activision Blizzard has been in the midst of serious scandals for months. 

However, this didn’t deter Microsoft’s acquisition of the Call of Duty and World of Warcraft game creators. 

In a statement, Microsoft said, “This acquisition will accelerate the growth in Microsoft’s gaming business across mobile, PC, console and cloud and will provide building blocks for the metaverse.”

However, this mega-deal still has to be approved by Activision’s shareholders and more importantly regulators. 

Microsoft has a current market valuation of $US2.3 trillion ($A3.2 trillion) and will pay approximately 3 per cent of its market cap for Activision. 

On the merits of the deal, Piper Sandler analysts noted, “Gaming and advertising represent two segments that combined represent an incremental $1 trillion share gain opportunity for Microsoft longer-term.”




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