To Microsoft (MSFT34) announced this Tuesday (18) the purchase of Activision Blizzard (ATVI34), one of the most successful gaming companies, in a $68.7 billion deal, the biggest deal in the industry.
“When the transaction closes, Microsoft will be the world’s third-largest gaming company by revenue, behind Tencent and Sony,” the company said in a statement.
The acquisition includes iconic games from Activision, Blizzard and King such as Warcraft, Diablo, Overwatch, Call of Duty e Candy Crush, in addition to global e-sports activities through Major League Gaming.
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Activision Blizzard has nearly 400 million monthly active players in 190 countries and billion-dollar franchises.
Microsoft offered a value of $95 per asset, which corresponds to a 45% premium over the close of Activision Blizzard’s share in last Friday’s session.
At 11:40 am ET, Activision’s assets were up 32.29% on Nasdaq at $86.50, while Microsoft was down 1.40% at $305.76. In B3, the BDRs (Brazilian Depositary Receipts) ATVI34 rose 28.73% at the same time, at R$460, while MSFT34 shares fell by 0.93%, at R$70.44.
Controversies involving the company
The sale of Activision Blizzard comes amid a sexual harassment lawsuit filed in July 2021 by the California Department of Employment and Housing against the company.
Last Monday, Activision announced measures to eradicate sexual misconduct and harassment at the company, saying that it seeks interim measures to resolve the case and also improve its internal policy on conduct and work ethics.
After completing some analyses, the company laid off about thirty-seven employees and another forty-four received notifications such as warnings and formal notices, the company informed the day before in a note.
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In a note on the previous day’s announcement about Activision, Levante Ideias de Investimentos highlighted that the specter of ethical conduct at work continued to be a detractor for the company’s shares, a benchmark in the video game and entertainment development market.
“Activision Blizzard is a gigantic company, arising from the merger of Activision and Blizzard Entertainment that took place in 2008 and are two electronic game and entertainment developers with major game franchises recognized worldwide. Last quarter, the company posted net income of $2.07 billion, with earnings before interest, taxes (Ebit) of $824 million, converging to earnings per share of $0. .82”, he pointed out.
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