Activision Blizzard: The History Behind Microsoft’s $69 Billion Acquisition

Activision Blizzard, now owned by Microsoft, is a prominent player in the video game industry, known for blockbuster franchises such as Call of Duty. Let's delve into the fascinating history of this gaming giant and the series of events that led to Microsoft's monumental $69 billion acquisition.

The Birth of Activision Blizzard

Formed in 2008 through the merger of Activision and Vivendi Games, Activision Blizzard has a rich legacy. Activision, a pioneer in third-party console game development since 1979, joined forces with Vivendi Games' subsidiary, Blizzard Entertainment, to create the powerhouse we know today.

The Destiny Deal and Split

In 2010, Activision Blizzard inked a $500 million deal with Bungie to propel the "Destiny" franchise to new heights. However, the partnership ended earlier than expected in 2019, with Bungie parting ways with Activision Blizzard amicably and retaining publishing rights for "Destiny."

Controversies and Legal Battles

Activision Blizzard faced significant backlash in 2022 when the state of California filed a lawsuit alleging widespread harassment and a toxic work culture. Amid mounting pressure, CEO Bobby Kotick came under fire, with calls for his resignation from over 1,000 employees.

The Microsoft Acquisition Saga

Microsoft's acquisition of Activision Blizzard in 2023 for $69 billion sent shockwaves through the gaming world. The move was hailed as a strategic step towards building the metaverse, with Microsoft emphasizing its commitment to expanding the reach of popular franchises like Call of Duty.

Legal Hurdles and Regulatory Approval

Despite facing legal challenges from regulators, Microsoft's acquisition of Activision Blizzard was ultimately greenlighted, positioning Microsoft as a major player in the gaming industry. The deal not only bolstered Microsoft's Xbox division but also granted access to Activision Blizzard's vast library of games.

Post-Acquisition Layoffs

Following the acquisition, Microsoft implemented significant layoffs across Activision, Xbox, and ZeniMax, affecting thousands of employees. Despite generating substantial revenue, Activision Blizzard bore the brunt of the layoffs, reflecting the challenges faced by the tech and gaming sectors in the post-pandemic landscape.

As the industry adapts to evolving market dynamics and increased competition, the fallout from Microsoft's acquisition continues to reverberate across the gaming landscape.

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By: kyle@ktwilson.ca (Kyle Wilson)
Title: Activision Blizzard: The History Behind Microsoft’s $69 Billion Acquisition
Sourced From: www.businessinsider.com/activision-blizzard
Published Date: Wed, 08 Jan 2025 03:08:01 +0000