Do you know Microsoft has bought Activision Blizzard for $68.7 billion with an eye on capturing the metaverse? After the Call of Duty maker fired many people found complicit in sexual harassment, the offer came as a respite for their struggling executives. Although the takeover comes at a premium price, it can be a significant powerplay in the battle for the metaverse. However, in the short term, the deal has immediately started influencing the share price of Sony, which is always in a never-ending console battle with Microsoft.
Right after Microsoft’s announcement, the price of Sony’s share fell 9%. No one knows for sure how it will impact Sony’s popular gaming platform PlayStation and its competition with Microsoft’s Xbox.
Important Details and Implications of the Metaverse Deal with Activision Blizzard
Such a massive deal by a massive player in the IT world always has some long-standing and far-reaching impacts. Below are some immediate effects and implications of Microsoft’s deal:
- Microsoft offered Activision Blizzard a premium of 45% on each of its shares. Every share was bought at $95 per share. It is a major boost in Microsoft’s metaverse plans that were lagging behind other major players’ (Like Meta/Facebook and Google) recent initiatives.
- Microsoft’s Mesh is the only concrete metaverse offering to date. The acquisition of Activision Blizzard is likely to bring a sudden rush of new metaverse offerings.
- Microsoft has already funded Palm NFT studio, which has been behind popular NFT projects such as “Space Jam 2″ NFT collection and DC Fandome 2021 event. So, the acquisition of Activision Blizzard seems like a step to further their plans in the crypto and virtual world.
- Activision Blizzard struggled due to sexual allegations, so the deal came as a way out of a difficult situation.
- Since July 2021, Activision Blizzard has fired over 36 employees and disciplined 40 employees over allegations of sexual harassment.
- Shares of the Japanese Sony Group fell 9% after the news was revealed.
After acquiring Activision Blizzard, Microsoft has immediately become a top contender in the metaverse and NFT universe. The deal has a far-reaching impact and might have a bearing on the prices of many cryptocurrencies. Even more importantly, it will have a considerable say in the battle of the consoles: Microsoft’s Xbox vs. Sony’s PlayStation.
As gaming influences a large section of millennials and Gen Z, who are the prime consumers of the metaverse, Microsoft’s expensive takeover can be a step in the right direction. It is a decisive action that might see them take a stranglehold over the metaverse and console gaming.