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| Deyon said: I'm outta the loop with this whole Activision acquisition. The price is pretty steep for a company with only 1 mainstream franchise that's on a decline, which makes me ask why and what's the positive outcome from this? I know that their strategy is all about their Game Pass but couldn't they make a deal with them on that for a couple years that would cost them a lot more less than just buying them? |
Think of it this way, which is the way it's meant to be thought of: Microsoft isn't "losing" $69bn, they're changing $69bn from cash into assets, the $69bn becomes ABK in assets (also, Microsoft will make that back quickly either way). The money they make from Activision-Blizzard will be more than the money made from interest on that $69bn.
Also...Activision definitely does not have only 1 mainstream franchise...There's Call of Duty, World of Warcraft, Overwatch, Diablo, all of those IP are massive. Call of Duty and Diablo's most recent entry just broke records for their respective franchises, Lol.
In addition, King is massive, Candy Crush is massive and 36-47% of ABK's recent revenue came from Mobile. Activision-Blizzard pulls around $7-$8bn in revenue per year, and around $1-$2bn profits per year. ABK is still the biggest third party publisher in terms of revenue and profit.
Activision provides a boon everywhere, to Game Pass, to their PC efforts and to their Mobile efforts, it's not just Game Pass they want ABK for.
Last edited by Ryuu96 - on 14 July 2023
