Microsoft to acquire Activision: It's mostly about the IPs

On January 18,?Microsoft?announced?it has agreed to acquire video game editor?Activision Blizzard?for a staggering $68.7 billion (the transaction is expected to close in fiscal year 2023).

So what is prompting the Big Tech firm to go ahead with such hefty investment? Aka the biggest video game deal ever… (pending regulatory approval of course).

It’s mostly the?IPs… Let me explain.

Activision is a true “OG” in the gaming industry. The company was?formed?in 1979 in the San Francisco Bay Area and over the years has build an?impressive list of hits?(in part due to an agressive merger and acquisition strategy). Some of these glorious titles include:?Candy Crush,?Guitar Hero,?Tony Hawk’s Pro Skater,?World of Warcraft, and the currently very popular?Call of Duty. Gaming journalist Chris Scullion compiled a rather extensive list of Activision IPs in a recent?Video Games Chronicle?piece. It’s definitely worth checking if you’re feeling nostalgic.

Microsoft’s ambition is basically to fully integrate these classic games into its?multi-platform gaming business?(mobile, PC, console and cloud). Given the notoriety of some of these gaming franchises and the tech giant’s reach, this seems like a solid plan.

Some commentators are?suggesting?the IPs present a huge opportunity in regards to the “Metaverse” but… there are many things we do not know about such in terms of market adoption (don’t let the name of this newsletter fool you ??).