LowEndBox - Cheap VPS, Hosting and Dedicated Server Deals

Microsoft Acquires Activision

ActivisionNews broke after market close yesterday that Microsoft is acquiring Activision Blizzard.

The acquisition puts many gaming franchises into Microsoft’s hands, including Call of Duty, Warcraft/StarCraft, Diablo, Tony Hawk, Candy Crush, and many others.

In recent years, Activision has grown its revenue and is generating healthy profits: $9B a year.  Globally, the gaming market will continue to expand.

Microsoft (NYSE:MSFT) is paying a premium at $95/share ($74 billion) though analysts feel the valuation is reasonable.  Less cash on hand, the true price is $68 billion.  Microsoft is paying for an enterprise that is making 13% on this money ($9bn a year), and that doesn’t factor in growth or eliminating redundancies.

Microsoft also has the opportunity now to leverage Activision to make Xbox-exclusive content to drive hardware sales.  Even Xbox-first or Xbox-premium content will assist.

Goldman Sachs says “Microsoft stated it see opportunities to be a key player in the future metaverse era.”  While the “metaverse era” is presently somewhere between a pipe dream and an acid flashback, the move does position Microsoft to instantly be a leader in gaming.

 

No Comments

    Leave a Reply

    Some notes on commenting on LowEndBox:

    • Do not use LowEndBox for support issues. Go to your hosting provider and issue a ticket there. Coming here saying "my VPS is down, what do I do?!" will only have your comments removed.
    • Akismet is used for spam detection. Some comments may be held temporarily for manual approval.
    • Use <pre>...</pre> to quote the output from your terminal/console, or consider using a pastebin service.

    Your email address will not be published.