Microsoft to buy Activision Blizzard for $69bn

Microsoft will pay $95 a share according to Bloomberg. This take over could prove to be one of the biggest in the video game industry and is context gold for students and lots of links can be made to various areas of the A-level specifications:

The value of cash stated on Microsoft’s statement of financial position has almost doubled since 2017. What long term implications might the deal have for the company’s liquidity position?

Microsoft are clearly capitalising on changing social trends. Lockdowns induced a wave of increased demand for games consoles and games and according to Statista, time spent on games increased by 39%. Working from home has also contributed to an increase in sales of consoles and games.

What are the implications for leadership and management once Activision Blizzard falls under the control of Microsoft’s gaming division? Growth can lead to synergies but there is also a risk of culture clashes and resistance to change.

With the acquisition, Microsoft will now own the “Call of Duty” and “Candy Crush” franchises. Will these additions to businesses product portfolio enable Microsoft to generate a competitive advantage over rivals such as Sony?

To what extent will the acquisition enable Microsoft to achieve a competitive advantage over rivals in terms of research and development of metaverse platforms?

Does the deal raise concerns in terms of competitiveness of the industry? It represents a significant step towards Microsoft becoming more increasingly vertically integrated and controlling a key element of its supply chain.

The following links provide further analysis and evaluation that I hope will be useful: