Microsoft's Acquisition of Activision Blizzard: A Case Study
DOI:
https://doi.org/10.54097/hbem.v7i.6969Keywords:
Microsoft, Blizzard, Acquisition, Case Study.Abstract
On January 18, 2022, Microsoft announced its intention to initiate the acquisition of Activision Blizzard. It will pay for about $69 billion in an all-cash deal and the price will place a 45% premium on Activision Blizzard's value. Based on industry prospect analysis, competitor analysis, and SWOT analysis, this paper studies the case of Microsoft acquiring Activision to analyze the potential benefits and risks of this typical acquisition behavior. This paper finds out that the two company has a positive outlook since the COVID-19 pandemic pushed cloud service and the gaming market. The industry analysis as well as the SWOT analysis of both companies also indicate that they have the opportunity to develop mutually and complement each other's weaknesses. This paper may help to understand the business purpose, risks, and benefits of the acquisition from the perspective of future cloud services market development. On the basis of the key findings, this paper believes that the acquisition will contribute more positive effects to both Microsoft and Activision Blizzard.
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