Microsoft To Buy Activision Blizzard for $68.7 Billion

[Alkizon]

Well...

Aphrel
Well, after blizzcon it already seems like blizzard is jumping on the PC bandwagon anyway. So i dont think it will change much.

Much that, I don't think it will somehow worse affect neither art, nor story, nor game mechanics. Really, it's already difficult to expect something even worse.

If we talk about mergers, then I would suggest (Disney) + (Activision-Blizzard) + (Microsoft). Conglomerate will subordinate a large part of entertainment infrastructure (including soft, games and movies with cartoons)

then maybe this comic forecast will cease to be comic after all

[Zoura]

Yes, actually. That’s why the expansions have been getting scaled back in quality and scope. Money goes straight to the top; and they budget how much gets reinvested and that’s what the developers have to work with. I honestly think garrisons in some iteration would still be a part of the game if the budget allowed for development of continuous systems going forward. Currently, the team adds a system and abandons it for the next because they don’t have the finances to keep that snapshot of the game in ongoing development. One could argue development bloat, but at the end of the day, adding and cutting these systems so quickly is negatively affecting player retention; all your hard work is stripped away. No player housing because they don’t have the financial capability to do it within the budget they are given.

I rather be backed by Microsoft than Apple if i were them, and i think they think so aswell.

[Orby]

Everyone talking about Mr Clippy yet I only ever used Merlin

[T-34]

That would be a meaningless attempt, because the Activision acquisition is signed and for practical purposes:it already belongs to Microsoft for that sort of thing (notice half of the reporters already say "Microsoft bought Activision" even if in legal terms it's not completely).

In simple words: it would be like Amazon attacking Microsoft which is a bigger game.

The deal isn't final until the stockholders have had their say. They can still turn MS' offer down and/or accept a better offer.

[terminaltrip421]

OK. $5 million a month is $60 million for a year. If WoW is doing less, say $50 million a year just to make up a number that’s $110 million. So where is the other $1.8 BILLION coming from? An overpriced remake of Diablo II? Hearthstone? I don’t see it.

I'm not saying it's the source but hearthstone is insanely expensive.

[OrangeJuice]

Microsoft is a solid company so the potential is there, its just a question of when will they reach WoW. I think immediately they're going to focus on OW, and trickle down into Diablo/Hearthstone since all 3 of those are the most console compatible games, as well as already being genres they're familiar with. It could be years before they get those games into a spot they're comfortable with. Or, their staff is large enough to polish all games simulataneously, which I think would be best.

[epigramx]

The deal isn't final until the stockholders have had their say. They can still turn MS' offer down and/or accept a better offer.

That's not going to happen. This is very public now and in 'celebration' mode. If there was a (reasonable) chance for that you wouldn't see that media.

[StillMcfuu]

OK. $5 million a month is $60 million for a year. If WoW is doing less, say $50 million a year just to make up a number that’s $110 million. So where is the other $1.8 BILLION coming from? An overpriced remake of Diablo II? Hearthstone? I don’t see it.

Hearthstone is the big money maker and has been for a while, Starcraft as well but without their constant expansions not anymore. Its safe to assume HotS was doing alright for a while but them stopping character creation means it didn't make sense financially to continue the series.
WoW is a big money maker, not only the sub, but MTX and the 2 year expansion cycle allows them to hide development every other year and the expansions are always big sellers. You can't just look at any one year with Wow or Diablo for that matter, you'll see a better average on expansion release years when they defer development costs because of the expansion payday. Classic will also be bringing in a pay day with tbc and presumably more of the same with Wrath.

But yes I would say by itself Hearthstone is probably 1/3 to 3/7 of blizz income. On non expansion years, its probably going to be more than half.

[Niwes]

Apple could easily double the offer tomorrow, they're sitting on mountains of cash. And it would be an interesting purchase for them, as their game portal doesn't have much going for it. But people have been speculating about Apple buying movie studios and such, and Apple seems content to sit on their cash, so far.

I read today that the deal is far along enough contractually that if the deal falls through, MS will have to pay a break fee of 3 billion if they are blocked by the SEC. Break fees are also implied for ATVI if they were to stop the sale and take a higher price from someone else.

https://www.reuters.com/technology/m...on-2022-01-18/




https://www.investopedia.com/terms/b/breakfee.asp

So, a new deal would be on which side decides 3 billion is a good price to pay for another agreement. It sounds like papers have been signed, and they're past the point of no return without significant penalty.

@MoanaLisa is correct with the assumptions. it „could“ be possible. Amazon have just to pay 3 billion + x on top of it, to pay ATVI‘s fee out. that said: that such things happen is ultra rare. for other reasons. if such a deal is public in 99,9% it will not change. because all the reasons to change it, already happened before. but nonetheless @MoanaLisa is correct by the fact that it „could“ happen. but its super unlikely.

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That's not going to happen. This is very public now and in 'celebration' mode. If there was a (reasonable) chance for that you wouldn't see that media.

exactly that.

EVERYTHING that could make or break it, happened already. also other competitors are already consolidated. all „big biz talks“, with all interessted companies in the industry, have already happened, when you see this public in media.

if you see an announcement like this on tv screen, everything is 99,99999% final. otherwise you would not see it. and we dont talk about a 70 billion dollar genltmans agreement here. we talk about many pieces of papers and teams of lawyers.

[T-34]

That's not going to happen. This is very public now and in 'celebration' mode. If there was a (reasonable) chance for that you wouldn't see that media.

Probably not, but at the end of the day such a deal needs the approval of the stockholders, but why would a good capitalist turn down a good offer?
Nothing stops you from raising the flag and sallying forth and rallying enough holders of stock behind you and blocking the deal.... Good luck with that'

Those that own stock in Activision Blizzard don't owe you and me nothing. If they think that the deal is sweet then they will accept it.
Added: And be assured that MS has made it a sweet deal for stockholders of ActiBlizz...

[epigramx]

Probably not, but at the end of the day such a deal needs the approval of the stockholders

They have the approval of the major controlling shareholders, because they are confident they like the deal.

As someone else said: when you hear it at the news: it's 99.99999% done.

[Sluvs]

Uhhhh what? I'm going to need a link to wherever you saw WoW brings in $1 billion a year because I can't find anything to support that.

It is an educated guess based on the info we have, it might be off because I am no inside man. But even if it makes half of that every year, its is still a lot.

Usually blizzard's income is around 450 million each quarter.

By their own admission, World of Warcraft is it's largest franchise (Investor's calls Q3 2021). Considering that overwatch sells very little now and that hearthstone is also a powerhouse, I ESTIMATE that WoW is at least 50% of their revenue. This would mean that it brings 225 million. If it is like that every quarter, we simply multiply it by 4, resulting in 900 million. Considering that every other year it brings 220 million dollars with an expansion, it is not far fetched to think reach such a number. That is all before the operating cost mind you (which is around 35%). But even if you low ball it and bring it to 40% ou 35% of their total revenue, it still amounts to at least 650(35%) million a year.

Sure I might be WAY off here. After all this is just a lot of guess work and I'm not trying to pass this as fact, if I gave you that impression, that is on me. But to say that WoW is not Insanely profitable is wrong, IMHO.

[kodemonkee]

But to say that WoW is not Insanely profitable is wrong, IMHO.

Warzone makes in a month what WoW makes in a year lol. Candy Crush makes a lot more too.

[Sluvs]

Warzone makes in a month what WoW makes in a year lol. Candy Crush makes a lot more too.

IMHO, That is literally impossible.

CoD Warzone fall under ACTI 650 million every quarter. Even if we consider that all of this money comes from Warzone (which it does not), this would mean that it makes 216 million every month (which it does not)

By the most conservative measures (to the point of parody mind you), WoW makes at least 600 million every year.

Your math does not add up.

[Menz]

Ok, maybe we will have Jastor Gallywix back again?

[Lodreh]

Huh, I always imagined riot merging with Blizz so we get a WoW and LoL crossover

Oh well XD

Riot Games is owned by Tencent... so not much chance of that happening.

[verylargeprime]

Honestly the best thing that could happen to WoW. Having a giant like MSFT backing you relieves a certain degree of toxic pressure to bleed your products dry. If I were a Blizzard employee right now who just wanted to focus on making great games, I'd be overwhelmed by feelings of relief.

I expect good things to come out of this.

[GreenJesus]

They had 6 massively popular games come out before WoW that he had nothing to do with.

That’s not even including their 3 console games (which, I think did pretty well, but not as popular)

So no, he’s definitely not original Blizzard.

True, I probably phrased it wrong. I was born in '95, so 2002 seems like far enough back to me to be considered old Blizzard. I didn't even hear about Blizzard was until around 2007.

[GUZ]

wow/diablo is saved Microsoft def will put love into these franchises

[Gadzooks]

@MoanaLisa is correct with the assumptions. it „could“ be possible. Amazon have just to pay 3 billion + x on top of it, to pay ATVI‘s fee out. that said: that such things happen is ultra rare. for other reasons. if such a deal is public in 99,9% it will not change. because all the reasons to change it, already happened before. but nonetheless @MoanaLisa is correct by the fact that it „could“ happen. but its super unlikely.

Yes, that was my point - it could happen, but it's unlikely at this point, contractually. I shouldn't have to spell it out, but...MMOC. I never stated it was impossible. Just unlikely.

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I love how that shitberg Kotick was in the press blaming the slowness of D4 and O2 for this. Fucking piece of shit. It's the developer's fault?

I hope he chokes on something expensive on his blood money yacht.