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Official Microsoft and Activision Blizzard Announcements on Acquisition

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We have two official announcements surrounding the giant, almost $70 billion, Microsoft acquisition of Activision Blizzard from both sides, starting with Microsoft CEO Phil Spencer issuing a statement on Xbox Wire, focuisng on Game Pass additions and cloud gaming:

Microsoft LogoMicrosoft (Source)

As a team, we are on a mission to extend the joy and community of gaming to everyone on the planet. We all know that gaming is the most vibrant and dynamic form of entertainment worldwide and we’ve experienced the power of social connection and friendship that gaming makes possible.

As we pursue that mission, it is incredibly exciting to announce that Microsoft has agreed to acquire Activision Blizzard.

Over many decades, the studios and teams that make up Activision Blizzard have earned vast wellsprings of joy and respect from billions of people all over the world. We are incredibly excited to have the chance to work with the amazing, talented, dedicated people across Activision Publishing, Blizzard Entertainment, Beenox, Demonware, Digital Legends, High Moon Studios, Infinity Ward, King, Major League Gaming, Radical Entertainment, Raven Software, Sledgehammer Games, Toys for Bob, Treyarch and every team across Activision Blizzard.

Until this transaction closes, Activision Blizzard and Microsoft Gaming will continue to operate independently. Once the deal is complete, the Activision Blizzard business will report to me as CEO, Microsoft Gaming.

Upon close, we will offer as many Activision Blizzard games as we can within Xbox Game Pass and PC Game Pass, both new titles and games from Activision Blizzard’s incredible catalog. We also announced today that Game Pass now has more than 25 million subscribers. As always, we look forward to continuing to add more value and more great games to Game Pass.

The fantastic franchises across Activision Blizzard will also accelerate our plans for Cloud Gaming, allowing more people in more places around the world to participate in the Xbox community using phones, tablets, laptops and other devices you already own. Activision Blizzard games are enjoyed on a variety of platforms and we plan to continue to support those communities moving forward.

As a company, Microsoft is committed to our journey for inclusion in every aspect of gaming, among both employees and players. We deeply value individual studio cultures. We also believe that creative success and autonomy go hand-in-hand with treating every person with dignity and respect. We hold all teams, and all leaders, to this commitment. We’re looking forward to extending our culture of proactive inclusion to the great teams across Activision Blizzard.

Around the world, there is no more exciting venue for fun and connection than video games. And there has never been a better time to play than right now. As we extend the joy and community of gaming to everyone, we look forward to welcoming all of our friends at Activision Blizzard to Microsoft Gaming.

MicrosoftGamingGLT_118.jpg

And Activision Blizzard had a similar press release, focusing a little more on the financials:

Blizzard LogoActivision Blizzard (Source)

REDMOND, Wash. and SANTA MONICA, Calif., Jan. 18, 2022 /PRNewswire/ -- 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.

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.

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What I don't get is why MS would buy ABK, knowing the legal headache they're acquiring, yet allow Bobby Kotick to stick around, since he's the guy who's allowed all that to fester...and has had his own legal/ethical issues with inappropriate behavior? ABK shareholders want him gone and have filed a lawsuit to have him kicked, IIRC? Did the guys at MS not take any of this into consideration when they were negotiating the buy?  If I'd been involved, Kotick's exit would have to have been part of the deal, since he's obviously not the guy to lead ABK out of this mess he led it into.

Just my opinion and it may or may not be worth the proverbial 2 cents...

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14 minutes ago, Danthalas said:

What I don't get is why MS would buy ABK, knowing the legal headache they're acquiring, yet allow Bobby Kotick to stick around, since he's the guy who's allowed all that to fester...and has had his own legal/ethical issues with inappropriate behavior? ABK shareholders want him gone and have filed a lawsuit to have him kicked, IIRC? Did the guys at MS not take any of this into consideration when they were negotiating the buy?  If I'd been involved, Kotick's exit would have to have been part of the deal, since he's obviously not the guy to lead ABK out of this mess he led it into.

Just my opinion and it may or may not be worth the proverbial 2 cents...

A group of activist shareholders with a tiny percentage of shares want him gone. The board doesn't give a *filtered* because Kotick is still making them money. The stock dropped not so much because of the legal issues but because of the quarter report showing an empty slate for Blizzard.

Edited by Nym85
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13 minutes ago, Nym85 said:

A group of activist shareholders with a tiny percentage of shares want him gone. The board doesn't give a *filtered* because Kotick is still making them money. The stock dropped not so much because of the legal issues but because of the quarter report showing an empty slate for Blizzard.

Even small groups of shareholders can make a big stink.  Not saying that will necessarily be the case here, but...

The sale announcement with the terms allowing Kotick to stay on was a kind of a shock after MS made the statement in the Fall about reevaluating MS's relationship with ABK in light of ABK not getting its house in order.  Maybe I shouldn't have been surprised, though.

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1 hour ago, Danthalas said:

What I don't get is why MS would buy ABK, knowing the legal headache they're acquiring, yet allow Bobby Kotick to stick around, since he's the guy who's allowed all that to fester...and has had his own legal/ethical issues with inappropriate behavior? ABK shareholders want him gone and have filed a lawsuit to have him kicked, IIRC? Did the guys at MS not take any of this into consideration when they were negotiating the buy?  If I'd been involved, Kotick's exit would have to have been part of the deal, since he's obviously not the guy to lead ABK out of this mess he led it into.

Just my opinion and it may or may not be worth the proverbial 2 cents...

With the buyout not being completed until mid-2023 I'm guessing MS doesn't have the ability to get rid of Kotick. We'll see what happens when it's finalized...I'm guessing he'll be shown the door at that time.

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1 hour ago, Danthalas said:

Even small groups of shareholders can make a big stink.  Not saying that will necessarily be the case here, but...

The sale announcement with the terms allowing Kotick to stay on was a kind of a shock after MS made the statement in the Fall about reevaluating MS's relationship with ABK in light of ABK not getting its house in order.  Maybe I shouldn't have been surprised, though.

Kotick is good at one thing and that's not making games. Corporate politics.

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1 hour ago, Danthalas said:

What I don't get is why MS would buy ABK, knowing the legal headache they're acquiring, yet allow Bobby Kotick to stick around

Kotick is rich and he's good at making money. No corporation is going to just get rid of him that easily, or he might not let them. Now, if he's going to stay after the deal is fully approved is another question. There is some possibility he could remain in some other role.

Edited by Arcling

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I'm sure part of the deal will be settling all the outstanding lawsuits before the deal is finalized.  It could take over a year to finalize all of this given the fact that both companies are global and will have to comply with laws about anti-trust, mergers etc in multiple countries.

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2 hours ago, Danthalas said:

What I don't get is why MS would buy ABK, knowing the legal headache they're acquiring, yet allow Bobby Kotick to stick around, since he's the guy who's allowed all that to fester...and has had his own legal/ethical issues with inappropriate behavior? ABK shareholders want him gone and have filed a lawsuit to have him kicked, IIRC? Did the guys at MS not take any of this into consideration when they were negotiating the buy?  If I'd been involved, Kotick's exit would have to have been part of the deal, since he's obviously not the guy to lead ABK out of this mess he led it into.

Just my opinion and it may or may not be worth the proverbial 2 cents...

What makes you think the legal headaches isn't what allowed them to do this likely so cheaply? I wouldn't be surprised if Blizzard were saying no for a while and this legal problem is what changed their minds about it, so i will not be shocked if this was a coordinated plan to get them to agree to it and i won't be shocked if the legal headaches just suddenly disappear.

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10 minutes ago, Lithari said:

What makes you think the legal headaches isn't what allowed them to do this likely so cheaply? I wouldn't be surprised if Blizzard were saying no for a while and this legal problem is what changed their minds about it, so i will not be shocked if this was a coordinated plan to get them to agree to it and i won't be shocked if the legal headaches just suddenly disappear.

You think that's cheap?

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3 hours ago, Danthalas said:

What I don't get is why MS would buy ABK, knowing the legal headache they're acquiring, yet allow Bobby Kotick to stick around, since he's the guy who's allowed all that to fester...and has had his own legal/ethical issues with inappropriate behavior? ABK shareholders want him gone and have filed a lawsuit to have him kicked, IIRC? Did the guys at MS not take any of this into consideration when they were negotiating the buy?  If I'd been involved, Kotick's exit would have to have been part of the deal, since he's obviously not the guy to lead ABK out of this mess he led it into.

Just my opinion and it may or may not be worth the proverbial 2 cents...

well they can't do anything until the deal is final and who knows maybe 70 billion was a discount price cause Bobby is still there and they are having legal troubles

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1 hour ago, Steveson said:

Nope. It was confirmed that he stays

only thing I saw confirmed was he was staying at least until the deal was final, since that's gonna be at least a year off, a lot of stuff can change between then and now

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Yeah he's gone once the deal is done and finalized. Now as far as his career goes I dunno what will happen but hopefully he wont be put anywhere he can corrupt things further. Now with any luck certain people in Blizzard responsible with how WoW turned out will also be removed and replaced by a team that actually cares about how things turn out and play out as.

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1 hour ago, Calorat said:

well they can't do anything until the deal is final and who knows maybe 70 billion was a discount price cause Bobby is still there and they are having legal troubles

MS paid a premium of 69% so it was hardly discounted!

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2 hours ago, Steveson said:

Nope. It was confirmed that he stays

Try reading my post again...

"With the buyout not being completed until mid-2023 I'm guessing MS doesn't have the ability to get rid of Kotick. We'll see what happens when it's finalized...I'm guessing he'll be shown the door at that time.

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They're saying "we will offer as many Activision Blizzard games as we can within Xbox Game Pass and PC Game Pass".
PC Game Pass Ultimate costs € 12.99 per month and WoW game time also costs € 12.99 per month. I wonder if they'll give us WoW in PC Game Pass Ultimate. We'll just have to wait and see.

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I hope Micro$oft doesn't realize Heroes of the Storm is in maintenance mode, scrolls down the budget list, and throws money at it for renewed development. I'd even take a lil' clippy mount or master chief skin for raynor.

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9 hours ago, TyZone said:

I hope Micro$oft doesn't realize Heroes of the Storm is in maintenance mode, scrolls down the budget list, and throws money at it for renewed development. I'd even take a lil' clippy mount or master chief skin for raynor.

Add characters to HotS from all the franchises they own. Dovakhiin, Master Chief and Crash Bandicoot enter the Nexus!

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On 1/18/2022 at 11:19 AM, Boothyp said:

Glad we have the pronouns on the structure for X-box Leadership Team.

Be lost otherwise.........

 

these pronouns got to go so dumb

Edited by Guz
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Honestly, I think Microsoft buying Activision Blizzard could be the chance to start fresh and wipe clean the dirt that has been plaguing the company for years. Because if Microsoft bought the company even with all those scandals of *filtered* assault and toxic environment, I assume they plan on doing something about it, otherwise it'll stain their name too. This could not only reflect in a better workplace but also on the management, that has been rocky for a few years now.

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5 hours ago, Valhalen said:

Honestly, I think Microsoft buying Activision Blizzard could be the chance to start fresh and wipe clean the dirt that has been plaguing the company for years. Because if Microsoft bought the company even with all those scandals of *filtered* assault and toxic environment, I assume they plan on doing something about it, otherwise it'll stain their name too. This could not only reflect in a better workplace but also on the management, that has been rocky for a few years now.

Um, well, about that... They have their own issues as well.

https://www.nytimes.com/2022/01/13/technology/microsoft-sexual-harassment-policy-review.html

Edited by Arcling
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      - China has resumed issuing new game licenses since April, for dometic games.

      - Changing a publishing partnership means re-applying for game licenses even if the games are already approved by the regulator and it could take months or even years.

      - This is the second time Blizzard changes their Chinese publishing partner. 14 years ago, Blizzard ended the partnership with their first partner, The 9, and then started worked with NetEase. Combining the process of re-applying for new game license for TBC expansion due to changing the partnership from The 9 to NetEase and the difficulty of getting a game license for WotLK expansion, the original Burning Crusade exapanion in CN region lasted for a total of 1090 days. Chinese players were forced to play LK pre-patch for 19 months. Imaging playing TBC for 3 whole years.

      NetEase launched WotLK expansion in CN region on 31/08/2010. Just giving you an idea of how late that was. Paragon killed Arthas on 26th of March 2010. LOL. This is one of the reasons why LK classics is so popular in China.

      Now you can see why Blizz and NetEase's "divorce" is widely considered to be a BLOODY CATASTROPHE by the Chinese community.

      - Potenital buyer or interesting parties:

      miHoYo, the developer of Genshin Impact, has denies the rumors of licensing deal with Blizzard;

      Tencent replied that there was no relevant news internally for the time being;

      Perfect world is another hot candidate according to rumors;

      My source told me(and it's a good source), ByteDance, the parent company of Tiktok will be the successor or at least in the lead.

      "Does ByteDance have any experience of operating a game before?" Ye, that was my first question but I guess time will tell.

      - NetEase has promised that they will be issuing refund for all the players that still have remaining blizzard bucks and active game time in their accounts.

      - After 24th of Jan. all Blizzard services in China will be shutting down. I still don't know what to do after that and where to play wow yet.

      Thanks a lot to NasDa for all this information and I really do hope something can be done before January 23rd, as I cannot even imagine simply losing your entire WoW account, not to mention other Blizzard games - even temporarily, and especially with the potential of it being permanently gone. There are so many Chinese players who are part of the WoW community it would truly be a tragedy to see them lose everything they worked, a decade+ of time invested into the game could simply disappear.
    • By Staff
      Update: there's now also a very interesting comment from the NetEase Global Investment and Partnership President, which you can find at the bottom of the article.

      We now also have two NetEase messages to their Blizzard game players, detailing exactly what will happen on January 24th, when their license ends, from the Battle.net client being shut down, to support of new releases before that date, what will happen to character data and more. 

      Thanks to Neo once again for translating the below statement. 
      NetEase (Source)
      To all of you, dear Blizzard gamers.
      Thank you for your continued support and love of Blizzard products. We are honored to have worked with you for 14 years to create and share an unforgettable gaming experience, and once again, we thank you most sincerely!
      Due to the expiration of our agreement with Blizzard Entertainment, World of Warcraft, Hearthstone Legend, Overwatch Return, Diablo III, StarCraft II, Warcraft III: Remastered, Heroes of the Storm (collectively referred to as "Blizzard products"), which are operated by Shanghai NetEase Network Technology Development Co, will terminate operation at 0:00 on January 24, 2023, and we hereby notify you of the following matters related to the termination of operation in mainland China.
      November 23, 2022 onwards, we will close Blizzard game products in Battle.net and the client paid service and user registration portal.
      During the period from November 23, 2022 to January 23, 2023, the servers of Blizzard game products will be open normally, and the content update of World of Warcraft "Dragonflight", Hearthstone Legend "The March Of The Lich King" and "Overwatch Return Season 2" will be available as usual, and users can continue to log in and experience the game content. At the same time, users will still be able to spend their Battle.net points and virtual currency on their accounts.
      From 0:00 on January 24, 2023, the operation of Blizzard game products will be officially stopped, Battle.net login and all game servers will be closed, as well as the client download.
      After the game servers are closed, all account data and character data in each game (including but not limited to character data, remaining game time, each game's items, materials, subscription and paid information, etc.) will be sealed. We will properly handle the game data in accordance with the requirements of laws and regulations to protect the legitimate rights and interests of users. For players who have paid but not used all online game virtual currency and paid game time (if any) that has not yet expired, we will start to arrange refunds after Blizzard game products cease operation.
      ...
      Dear Blizzard gamers:
      Due to the expiration of Activision Blizzard's license agreement with NetEase on January 23, 2023, Blizzard will discontinue most of its game services in mainland China (including World of Warcraft, Hearthstone Legend, Overwatch Returned, Diablo III, StarCraft II, Heroes of the Storm) starting January 24 at 00:00, based on contractual restrictions, while Diablo: Immortal's service will not be affected.
      NetEase and Blizzard first partnered in 2008. Over the past 14 years, we have introduced Blizzard's high-quality games to China step by step, starting with World of Warcraft, and even synchronizing global release. With each introduction of a new game, we were excited, because these games also carry our passion and youth.
      Within NetEase, there are also several thousand hard-core fans of Blizzard games. Therefore, we are more empathetic to the feelings of players at this moment. Before today, we had been doing our best and negotiating with Blizzard in good faith to seek continued cooperation in mainland China. However, after long negotiations, we were still unable to reach agreement with Activision Blizzard on some key terms of cooperation. Unfortunately, Activision Blizzard has announced earlier today that they are ceasing its cooperation and we will have to accept this decision. After January 23, 2023, NetEase will lose its distributorship and will no longer be able to continue to manage and operate these games that have carried players' memories for 14 years.
      Next, NetEase Games will do its best to fulfill its responsibilities and serve players until the last moment. We promise that we will do our best to negotiate with Activision Blizzard to protect the interests of Chinese players to the greatest extent possible for the issues related to refunds, game data, virtual property, game rights, etc. that everyone is concerned about.
      At the same time, we will work with Activision Blizzard to achieve "business to business, game to game", pay attention to the voice of players, value all that players who have paid for the game, and properly protect everyone's game assets and memories. We will continue to inform players of the progress of the work through official channels such as the "Blizzard Game Service Center". Once again, we thank all players for their understanding and support. If possible, we hope that Blizzard's departure is only temporary. After the shutdown, we will continue to hold on in our own way and not give up lightly. We believe that those who meet can meet again.
      It seems there may have indeed  been some behind-the-scenes drama, as NetEase Global Investment and Partnership President Simon Zhu talked about his own characters and a certain "jerk" that caused or affected this outcome, over on his LinkedIn.

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