Microsoft to acquire Activision Blizzard to bring the joy and community of gaming to everyone, across every device
PR94119
REDMOND, Wash. and SANTA MONICA, Calif., Jan. 19, 2022 /PRNewswire=KYODO JBN/ --
- Legendary games, immersive interactive entertainment and publishing expertise
accelerate growth in Microsoft's Gaming business across mobile, PC, console and
cloud.
With three billion people actively playing games today, and fueled by a new
generation steeped in the joys of interactive entertainment, gaming is now the
largest and fastest-growing form of entertainment. Today, Microsoft Corp.
(Nasdaq: MSFT) announced plans to acquire Activision Blizzard Inc. (Nasdaq:
ATVI), a leader in game development and interactive entertainment content
publisher. 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.
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Microsoft will acquire Activision Blizzard for $95.00 per share, in an all-cash
transaction valued at $68.7 billion, inclusive of Activision Blizzard's net
cash. When the transaction closes, Microsoft will become the world's
third-largest gaming company by revenue, behind Tencent and Sony. The planned
acquisition includes iconic franchises from the Activision, Blizzard and King
studios like "Warcraft," "Diablo," "Overwatch," "Call of Duty" and "Candy
Crush," in addition to global eSports activities through Major League Gaming.
The company has studios around the word with nearly 10,000 employees.
Bobby Kotick will continue to serve as CEO of Activision Blizzard, and he and
his team will maintain their focus on driving efforts to further strengthen the
company's culture and accelerate business growth. Once the deal closes, the
Activision Blizzard business will report to Phil Spencer, CEO, Microsoft
Gaming.
"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, Microsoft. "We're investing
deeply in world-class content, community and the cloud to usher in a new era of
gaming that puts players and creators first and makes gaming safe, inclusive
and accessible to all."
"Players everywhere love Activision Blizzard games, and we believe the creative
teams have their best work in front of them," said Phil Spencer, CEO, Microsoft
Gaming. "Together we will build a future where people can play the games they
want, virtually anywhere they want."
"For more than 30 years our incredibly talented teams have created some of the
most successful games," said Bobby Kotick, CEO, Activision Blizzard. "The
combination of Activision Blizzard's world-class talent and extraordinary
franchises with Microsoft's technology, distribution, access to talent,
ambitious vision and shared commitment to gaming and inclusion will help ensure
our continued success in an increasingly competitive industry."
Mobile is the largest segment in gaming, with nearly 95% of all players
globally enjoying games on mobile. Through great teams and great technology,
Microsoft and Activision Blizzard will empower players to enjoy the
most-immersive franchises, like "Halo" and "Warcraft," virtually anywhere they
want. And with games like "Candy Crush," Activision Blizzard’s mobile business
represents a significant presence and opportunity for Microsoft in this
fast-growing segment.
The acquisition also bolsters Microsoft's Game Pass portfolio with plans to
launch Activision Blizzard games into Game Pass, which has reached a new
milestone of over 25 million subscribers. With Activision Blizzard's nearly 400
million monthly active players in 190 countries and three billion-dollar
franchises, this acquisition will make Game Pass one of the most compelling and
diverse lineups of gaming content in the industry. Upon close, Microsoft will
have 30 internal game development studios, along with additional publishing and
esports production capabilities.
The transaction is subject to customary closing conditions and completion of
regulatory review and Activision Blizzard's shareholder approval. The deal is
expected to close in fiscal year 2023 and will be accretive to non-GAAP
earnings per share upon close. The transaction has been approved by the boards
of directors of both Microsoft and Activision Blizzard.
Advisors
Goldman Sachs & Co. LLC is serving as financial advisor to Microsoft and
Simpson Thacher & Bartlett LLP is serving as legal counsel. Allen & Company LLC
is acting as financial advisor to Activision Blizzard and Skadden, Arps, Slate,
Meagher & Flom LLP is serving as legal counsel.
Webcast details
Microsoft Chairman and CEO Satya Nadella; Bobby Kotick, CEO, Activision
Blizzard; CEO, Microsoft Gaming, Phil Spencer; and Microsoft Chief Financial
Officer Amy Hood will host a webcast for investors and media on Jan. 18, 2022,
at 6 a.m. Pacific time/9 a.m. Eastern time regarding this transaction.
-- U.S.: (877) 407-0666 (no password required)
-- International: +1-201-689-8023 (no password required)
-- Webcast: https://aka.ms/MS-Investor-Call
There will be a recording of the conference call available shortly after the
call until Friday, Jan. 28, 2022, at 5 p.m. Pacific time. To access that
recording:
-- U.S.: (877) 660-6853
-- International: +1 (201) 612-7415
-- Conference ID: 13726291
For more information, please visit the blog post (
) from Phil Spencer, CEO, Microsoft Gaming. Related imagery (
) is also available. For broadcast quality b-roll and audio, please contact
XboxPress@assemblyinc.com.
Fast facts on gaming
-- The $200+ billion gaming industry is the largest and fastest-growing
form of entertainment.
-- In 2021 alone, the total number of video game releases was up 64%
compared to 2020 and 51% of players in the U.S. reported spending more
than 7 hours per week playing across console, PC and mobile.
-- 3 billion people globally play games today, which we expect to grow to
4.5 billion by 2030.
-- More than 100 million gamers, including over 25 million Xbox Game Pass
members, play Xbox games across console, PC, mobile phones and tablets
each month.
About Microsoft
Microsoft (Nasdaq "MSFT" @microsoft) enables digital transformation for the era
of an intelligent cloud and an intelligent edge. Its mission is to empower
every person and every organization on the planet to achieve more.
About Activision Blizzard
Our mission, to connect and engage the world through epic entertainment has
never been more important. Through communities rooted in our video game
franchises we enable hundreds of millions of people to experience joy, thrill
and achievement. We enable social connections through the lens of fun, and we
foster purpose and meaning through competitive gaming. Video games, unlike any
other social or entertainment media, have the ability to break down barriers
that can inhibit tolerance and understanding. Celebrating differences is at the
core of our culture and ensures we can create games for players of diverse
backgrounds in the 190 countries our games are played.
As a member of the Fortune 500 and as a component company of the S&P 500, we
have an extraordinary track record of delivering superior shareholder returns
for over 30 years. Our sustained success has enabled the company to support
corporate social responsibility initiatives that are directly tied to our
franchises. As an example, our Call of Duty Endowment has helped find
employment for over 90,000 veterans.
Learn more information about Activision Blizzard and how we connect and engage
the world through epic entertainment on the company’s website,
Forward-looking statements
This presentation contains certain forward-looking statements within the
meaning of the "safe harbor" provisions of the United States Private Securities
Litigation Reform Act of 1995 with respect to the proposed transaction and
business combination between Microsoft and Activision Blizzard, including
statements regarding the benefits of the transaction, the anticipated timing of
the transaction and the products and markets of each company. These
forward-looking statements generally are identified by the words "believe,"
"project," "predicts," "budget," "forecast," "continue," "expect,"
"anticipate," "estimate," "intend," "strategy," "future," "opportunity,"
"plan," "may," "could," "should," "will," "would," "will be," "will continue,"
"will likely result," and similar expressions (or the negative versions of such
words or expressions). Forward-looking statements are predictions, projections
and other statements about future events that are based on current expectations
and assumptions and, as a result, are subject to risks and uncertainties. Many
factors could cause actual future events to differ materially from the
forward-looking statements in this presentation, including but not limited to:
(i) the risk that the transaction may not be completed in a timely manner or at
all, which may adversely affect Activision Blizzard's business and the price of
the common stock of Activision Blizzard, (ii) the failure to satisfy the
conditions to the consummation of the transaction, including the adoption of
the merger agreement by the stockholders of Activision Blizzard and the receipt
of certain governmental and regulatory approvals, (iii) the occurrence of any
event, change or other circumstance that could give rise to the termination of
the merger agreement, (iv) the effect of the announcement or pendency of the
transaction on Activision Blizzard's business relationships, operating results,
and business generally, (v) risks that the proposed transaction disrupts
current plans and operations of Activision Blizzard or Microsoft and potential
difficulties in Activision Blizzard employee retention as a result of the
transaction, (vi) risks related to diverting management's attention from
Activision Blizzard's ongoing business operations, (vii) the outcome of any
legal proceedings that may be instituted against Microsoft or against
Activision Blizzard related to the merger agreement or the transaction, (viii)
the ability of Microsoft to successfully integrate Activision Blizzard's
operations, product lines, and technology, and (ix) the ability of Microsoft to
implement its plans, forecasts, and other expectations with respect to
Activision Blizzard's business after the completion of the proposed merger and
realize additional opportunities for growth and innovation. In addition, please
refer to the documents that Microsoft and Activision Blizzard file with the SEC
on Forms 10-K, 10-Q and 8-K. These filings identify and address other important
risks and uncertainties that could cause events and results to differ
materially from those contained in the forward-looking statements set forth in
this press release. Forward-looking statements speak only as of the date they
are made. Readers are cautioned not to put undue reliance on forward-looking
statements, and Microsoft and Activision Blizzard assume no obligation and do
not intend to update or revise these forward-looking statements, whether as a
result of new information, future events, or otherwise.
Additional information and where to find it
In connection with the transaction, Activision Blizzard, Inc. will file
relevant materials with the SEC, including a proxy statement on Schedule 14A.
Promptly after filing its definitive proxy statement with the SEC, Activision
Blizzard will mail the definitive proxy statement and a proxy card to each
stockholder entitled to vote at the special meeting relating to the
transaction. INVESTORS AND SECURITY HOLDERS OF ACTIVISION BLIZZARD ARE URGED TO
READ THESE MATERIALS (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ANY
OTHER RELEVANT DOCUMENTS IN CONNECTION WITH THE TRANSACTION THAT ACTIVISION
BLIZZARD WILL FILE WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL
CONTAIN IMPORTANT INFORMATION ABOUT ACTIVISION BLIZZARD AND THE TRANSACTION.
The definitive proxy statement, the preliminary proxy statement and other
relevant materials in connection with the transaction (when they become
available), and any other documents filed by Activision Blizzard with the SEC,
may be obtained free of charge at the SEC's website (http://www.sec.gov) or at
the Activision Blizzard website (https://investor.activision.com) or by writing
to Activision Blizzard, Investor Relations, 3100 Ocean Park Boulevard, Santa
Monica, California, 90405.
Activision Blizzard and certain of its directors and executive officers and
other members of management and employees may be deemed to be participants in
the solicitation of proxies from Activision Blizzard's stockholders with
respect to the transaction. Information about Activision Blizzard's directors
and executive officers and their ownership of Activision Blizzard's common
stock is set forth in Activision Blizzard's proxy statement on Schedule 14A
filed with the SEC on April 30, 2021. To the extent that holdings of Activision
Blizzard's securities have changed since the amounts printed in Activision
Blizzard's proxy statement, such changes have been or will be reflected on
Statements of Change in Ownership on Form 4 filed with the SEC. Information
regarding the identity of the participants, and their direct or indirect
interests in the transaction, by security holdings or otherwise, will be set
forth in the proxy statement and other materials to be filed with SEC in
connection with the transaction.
SOURCE Microsoft Corp.
CONTACT: Microsoft Media Relations, Assembly Media for Microsoft,
XboxPress@assemblyinc.com; financial analysts and investors only: Brett
Iversen, General Manager, Investor Relations, +1 (425) 706-4400; Note to
editors: For more information, news and perspectives from Microsoft, please
visit the Microsoft News Center at http://www.microsoft.com/news. Web links,
telephone numbers and titles were correct at time of publication, but may since
have changed. Shareholder and financial information, as well as today's 6:00
a.m. Pacific time conference call with investors and analysts, is available at
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