Activision Bizzard announced today its stockholders have approved Microsoft’s proposal to acquire the company, with more than 98 percent of shareholders voting in favor of the transaction.
Microsoft announced the reported $68.7 billion acquisition in January. A Microsoft press release confirmed the company would pay $95.00 per Activision Blizzard share in an all-cash transaction. The acquisition is making progress as this approval is a significant step in the lengthy process.
“Today’s overwhelmingly supportive vote by our stockholders confirms our shared belief that, combined with Microsoft, we will be even better positioned to create great value for our players, even greater opportunities for our employees, and to continue our focus on becoming an inspiring example of a welcoming, respectful, and inclusive workplace,” Activision Blizzard CEO Bobby Kotick said in a press release.
This acquisition pushes Microsoft into the third-biggest spot based on revenue behind Tencent and Sony. The acquisition means massive titles like Call of Duty, Diablo, Overwatch, and Starcraft will fall under the Microsoft umbrella.
The transaction is expected to close in Microsoft’s fiscal year, ending on June 30, 2023, and is “subject to customary closing conditions and the completion of regulatory review.”
When Microsoft announced its intentions to acquire Activision Blizzard in January, Activision’s stock price rose to $82.31 per share. Since then, however, Activision Blizzard’s price has trended downward as speculation has grown louder about the deal ultimately failing due to possible investor fears and risks.
Activision’s shares have trended similarly to the market this past month and are currently trading 25 percent below Microsoft’s $95.00 per share offer. As a result, this has caused Wall Street to be wary of the impending acquisition due to the decreased profit margins of Activision Blizzard and its pillar game, Call of Duty, in 2022.
Throughout the first quarter, Activision posted a profit of $395 million, which is more than $200 million less than last quarter’s $619 million profit, according to Wall Street. Additionally, the Call of Duty player base dropped from 107 million to 100 million active users in 2022.
The Microsoft-Activision Blizzard deal has until June 2023 to close. If the deal is able to close, this would make Microsoft the world’s No. 3 gaming company. It would also give it ownership over Call of Duty, World of Warcraft, and Overwatch, three popular worldwide gaming franchises. Furthermore, this would also give Microsoft control of Candy Crush developer King, which generated $2.58 billion in gross revenue through 2021.
