This was considered the largest purchase in the video game industry, for 68.7 billion dollars.
In 2021, Activision Blizzard reported US$8.8 billion in revenue.
By 2027, the value of the video game industry is expected to increase to about $141.6 million.
The video game industry has become one of the strongest today, for this reason many companies in the field have made millionaire movements to continue to stand out, that is why the regulators of this sector maintain vigilance that all the protagonists compete legally. This Wednesday the british regulator, Competition & Markets Authority (CMA), has opened an investigation for the acquisition of Microsoft to ActivisionBlizzard, which was considered the largest purchase in the video game industry, for 68.7 billion dollars.
The purchase, which was made in January, made Microsoft the third-largest gaming company by revenue. Likewise, With that transaction, Activision shares rose nearly 38 percent to $65.39.
ActivisionBlizzard (ATVI) is one of the “heavyweights” of the video game industry, it was founded in 2008 and, according to data from a firm reportin 2021 its annual revenues amounted to 8.8 billion US dollars.
The video game industry is one of the most millionaire and transcendent in the world, where last year it reached a value of approximately 199.5 billion US dollars and it is expected that by 2027 the value will increase to about 141.6 million, according to data from a Mordor Intelligence study.
This is why they open an investigation.
It was learned that the CMA is going to examine whether the million-dollar transaction complies with all the rules of economic competition, so he has decided to open the investigation.
Likewise, the British CNMC has explained that the process “officially begins tomorrow, July 7”, one day after being announced. The body has until September 1 to announce a decision and, on that date, it could open a second phase of the investigation.
Recall that Microsoft offered ActivisionBlizzard 95 dollars per share, currently this title has closed the last trading session at 79 dollars, andso far this year to date, the firm has appreciated by 17 percent.
Activision Blizzard is famous because it has titles like Call of Duty, World of Warcraft either candy crushso when the purchase was announced on January 18, Microsoft explained that the video game industry is the fastest growing form of entertainment in the world, with 3 billion players globally.
After the announcement of the sales many things were being speculated as one of them is that the technological giant aspires to include the video games of ActivisionBlizzard in its GamePassthe subscription for Xbox gamers, than the console of Sony’s PlayStation competitor technology company, which reveals in its 2021 report that it had a total of 109 million subscribers worldwide.
As Sony has also done other types of operations to continue competing with Microsoft, and announced the purchase of the developer Bungie for 3.6 billion dollars. While another industry brand take-two did the same with Zynga for 12 thousand 700 million dollars. And Unity acquired Weta, the Lord of the Rings studio, for $1.63 billion.
It is in this context that the purchase of Microsoft takes place and in which the CMA will examine whether the operation harms competition in the industry, will cause an increase in prices or if it will reduce the options of choice for consumers and video game fans.
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