Acquisition Analysis: Evidence from Microsoft’s Acquisition of Activision Blizzard

Abstract

As a matter of fact, the Internet era is evolving quickly these days, and the video game business in particular has a lot of room to grow in recent years. To be specific, a number of technology companies are continually purchasing and merging to increase their market share. At this point, Microsoft revealed the shocking announcement that Activision Blizzard would be acquired by the company for a whopping $68.7 billion. In the end, this acquisition helped Microsoft establish a strong foothold in the gaming industry, making it one of the top three gaming companies and facilitating its faster entry into the meta-universe, despite the company facing numerous challenges and risks during the process. On this basis, this study will select the target to carry out a detailed case study. The analysis of this purchase case in terms of background introduction, acquisition process, motivation for acquisition, financial analysis will serve as the basis for this article, and the findings will offer guidance on the mergers and acquisitions of technological companies.