CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Activision Blizzard Microsoft takeover: MSFT’s ATVI acquisition date and details in full

By Jenny McCall


Updated

A image of Microsoft and Activision Blizzard
Once the deal is complete, ATVI will be delisted from the Nasdaq - Photo: Getty Images.

While Global regulators are hotly debating the takeover by US tech giant Microsoft (MSFT) of gaming software producer Activision Blizzard Inc (ATVI) for $68.7bn (£56bn), industry rivals are also having their say.

Sony (SNE) has, unsurprisingly, come out on the 'against' side, given its PlayStation console is in direct competition with Microsoft's X-Box. But Meta (FB), owner of Facebook and Instagram said it has no problem with the deal. 

Despite this rising tide of uncertainty,  Microsoft (MSFT) Gaming CEO, Phil Spencer is upbeat about the takeover and in a recent Wall Street Journal Tech Live conference, Spencer said regulators investigating the deal have been "fair and honest" and he is confident the takeover will go through. 

What is your sentiment on MSFT?

437.55
Bullish
or
Bearish
Vote to see Traders sentiment!

Microsoft (MSFT) share price chart

Rivals' views

Sony goes head-to-head with Microsoft, with their rival consoles PlayStation and X-Box. If the deal goes ahead, X-Box will effectively own the popular Call of Duty game franchise, produced by Activision Blizzard. It has already said it will only allow Sony to keep the game on its console for a further three years - a deal Sony said was "inadequate on many levels".

With that said, several sources have claimed that SNE has delayed its annual PlayStation Showcase event because it believes this could add strength to Microsoft’s (MSFT) acquisition of gaming company Activision Blizzard (ATVI).

Meta, however, defended the deal, saying that there was an 'abundance' of new gaming content being produced constantly, by existing and the many new players entering the market.

Meta said in a Twitter post that segmentation of the gaming market by platform and hardward was 'inappropriate. It added: "In any scenario, barriers to market entry are generally low."

CMA calls for 'phase 2' investigation

Meanwhile, the UK's Competition and Markets Authority (CMA) has completed its Phase 1 investigation into Microsoft (MSFT) and on 1 September the group said:

"The CMA has also received evidence about the potential impact of combining Activision Blizzard with Microsoft’s broader ecosystem. Microsoft already has a leading gaming console (Xbox), a leading cloud platform (Azure), and the leading PC operating system (Windows OS), all of which could be important to its success in cloud gaming."

"The CMA is concerned that Microsoft could leverage Activision Blizzard’s games together with Microsoft’s strength across console, cloud, and PC operating systems to damage competition in the nascent market for cloud gaming services."

Sorcha O’Carroll, Senior Director of Mergers at the CMA, said that if the CMA's current concerns are not addressed within five days (8 September), the CMA said it will explore this deal in an "in-depth phase 2 investigation" to reach a decision that works in the interests of UK gamers and businesses.

Other regulators 

On Monday it was reveled that Microsoft (MSFT) has not offered any remedies to EU antitrust regulators reveiewing the acquisition. The European Commission announced it is scheduled to complete its preliminary assessment by 8 November and the website showed that MSFT had not provided concessions. 

Microsoft (MSFT)  also told regulators in New Zealand this week, that Activision Blizzard doesnt produce any "must have" games. The softer and dimissive language is said to be designed to reduce regulator concerns over MSFT takeover of ATVI. 

Replying to New Zealand's commissioners in June, MSFT said: "Specifically, with respect to Activision Blizzard video games, there is nothing unique about the video games developed and published by Activision Blizzard that is a "must have" for rival PC and console video game distributors that could give rise to a foreclosure concern."

 

AMD

151.35 Price
-3.270% 1D Chg, %
Long position overnight fee -0.0263%
Short position overnight fee 0.0041%
Overnight fee time 21:00 (UTC)
Spread 0.11

COIN

256.98 Price
+8.980% 1D Chg, %
Long position overnight fee -0.0263%
Short position overnight fee 0.0041%
Overnight fee time 21:00 (UTC)
Spread 0.51

NVDA

118.03 Price
-3.230% 1D Chg, %
Long position overnight fee -0.0263%
Short position overnight fee 0.0041%
Overnight fee time 21:00 (UTC)
Spread 0.11

TSLA

239.25 Price
-4.530% 1D Chg, %
Long position overnight fee -0.0263%
Short position overnight fee 0.0041%
Overnight fee time 21:00 (UTC)
Spread 0.14

Investors start to flee

Investors are now getting worried, and reports emerged in October that a seller unloaded 3.7 million shares in ATVI, in a move that could indicate a lack of confidence that Microsoft's buyout of Activision Blizzard (ATVI) will go through.

The shares were sold at a price of $72.25, as reported by Seeking Alpha and it seems investors are growing concerned that the deal maybe in jeopardy due to regulatory intervention, that many believe will scupper the takeover.

Did Microsoft buy Activision Blizzard?

The deal to buy Activision Blizzard is currently going through and MSFT has yet to buy ATVI. The acquisition is said to be the biggest ever in gaming.

Once the deal is complete, ATVI will be delisted from the Nasdaq (US100) and will no longer be a publicly traded company.

The current CEO of ATVI, Bobby Kotick will continue to serve as leader of Activision Blizzard, but once the deal closes, the ATVI 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.”

Activision Blizzard Inc. (ATVI) share price chart

When will Microsoft’s Activision deal go through?

The deal is currently in the process of going through and MFST is providing information to global regulators. An SEC filing states the deal will close in June 2023.

Nasdaq (US100) share price chart

How much will Activision shareholders get?

In January, MFST announced plans to purchase Activision Blizzard for $69bn, or $95 a share. ATVI is currently trading at around $79 per share. Activision shareholders approved the deal in April, with more than 98% of votes in favour.

Once ATVI is delisted from the Nasdaq (US100), it means that those who have shares in Activision Blizzard will no longer own stock in the surviving business, as it will be owned by Microsoft. Shareholders are, however, given the option to convert shares and will be entitled to receive $95 in cash for every Activision Blizzard share they hold.

The biggest gaming platform 

Microsoft Gaming's CEO Phil Spencer revealed the tech giant’s motivation behind the deal in a recent interview with Bloomberg: “When we were thinking of what we were capable of, where do we need to go…the biggest gaming platform on the planet is mobile phones,” he said.

“One and a half billion people play on mobile phones. And I guess, regretfully as Microsoft, it’s not a place where we have a native platform. As gaming, coming from console and PC, we don’t have a lot of creative capability that has built hit mobile games. One thing about video games is when you have been around maybe for too long, you know most of the creators out there. So you know who could be the right fit. 

“But we really started the discussions, internally at least, on Activision Blizzard around the capability they had on mobile, and then PC with Blizzard. Those are the two things that were really driving our interest.”

But ATVI has faced some challenges and last month it launched its free-to-play Overwatch 2 game and it  has not come without its hiccups. It’s been tough to enjoy the game because of long virtual queue lines to start playing, alongside other issues with the server once gamers get into a match. ATVI said that a distribution denial-of-service attack (DDoS), was to blame for the issues. This has led many to ask - is this a sign of things to come? 

Markets in this article

MSFT
Microsoft Corp (Extended Hours)
437.55 USD
-3.84 -0.870%
US100
US Tech 100
19526.6 USD
-224.4 -1.140%
SNE
Sony
92.89 USD
-0.19 -0.200%
META
Meta Platforms Inc (Extended Hours)
477.55 USD
-0.5 -0.100%

Related topics

Rate this article

Related reading

Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that Capital.com believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

Still looking for a broker you can trust?

Join the 630,000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading