The Activision Blizzard (ATVI) – Microsoft (MSFT) Deal
The largest tech deal on record experienced a breakthrough in regulatory hurdles on March 24, 2023, when the UK’s Competition and Markets Authority provisionally found that Microsoft’s proposed acquisition of Activision Blizzard “will not result in a substantial lessening of competition in relation to console gaming in the UK.”
On January 18, 2022, Microsoft announced it would acquire Activision Blizzard in an all-cash deal valuing the company at $68.9 billion, or $95.00 per share. The transaction, if approved by regulators, will make Microsoft the world’s third-largest gaming company (behind Tencent and Sony). In acquiring Activision Blizzard, Microsoft gains control over legendary gaming franchises like Call of Duty, Candy Crush, and Warcraft, as well as ATVI’s 400 million player base. Microsoft also unlocks significant opportunities in the mobile gaming market – the largest and fastest-growing gaming segment.
The deal has been going through multiple regulatory hurdles since it was announced. We wrote about this deal in detail in our January 2023 newsletter titled, InsideArbitrage Special Situations Newsletter: January 2023.
We wrote the following regarding the ‘Regulatory Overview’ of the deal: