All the reasons why Microsoft buying Activision Blizzard was an excellent move. From the merger of two gaming brands to bringing in more profits for shareholders to selling their game engine.
Introduction to Microsoft and Activision
Microsoft is the world’s largest software company, with several products, including the standard Windows OS, Office applications, and Xbox. Microsoft has become one of the prominent companies in technology for its product lineup and being a globally recognized brand. From 1980 to 2000, Microsoft went through a prolonged financial struggle because of its high costs and lack of focus on profitability.
Over time, Microsoft has come back into focus with CEO Satya Nadella taking over from Steve Ballmer in 2014. With Nadella at the helm, Microsoft has been focusing on cloud computing. This change in strategy shows that Microsoft is willing to invest money and take risks to grow their business significantly more than before. View Source: Businesswire
The benefits of this merger
The merger of two gaming brands is an essential step for the future of both. It will help bring in more profit and improve the game engine, ultimately making it easier and better for players to play games.
Why it was an intelligent decision for the shareholders
Microsoft and Activision Blizzard have had a successful relationship in the past. The two companies’ partnership has been beneficial for both of them, with Microsoft getting to use the engine for their games and Activision selling more fun. With this recent merger, it is looking better than ever for both parties because of its benefits to Microsoft, shareholders, and gamers alike.
The merger is an intelligent decision for shareholders interested in Microsoft’s bottom line. Microsoft will be bringing in more profits from their company and making strides towards staying competitive in a fancy-schmancy new market that is not just about consoles anymore: PC gaming. This merger will allow this process to happen much quicker than if Microsoft were to go at it alone.
The sale of the game engine
Moving on from the sale of the game engine, Microsoft will now focus solely on gaming. With the purchase of Activision Blizzard, Microsoft can now release its games that are made specifically for Xbox. This acquisition benefits both companies and their shareholders because it will increase revenues and profits, respectively. With this merger, Microsoft will also develop games better than ever before because they have access to the game engine. Activision developed the game engine, so by purchasing them, all rights were transferred over to Microsoft to continue using it.
More earnings possibilities in the future
The acquisition of Activision will allow Microsoft to take on more sounds for the Xbox One and Windows 10 gaming systems. In addition to that, it will also allow them to sell their game engine to other companies. This is vital because it provides a way for Microsoft to make more money in the future through video game development and sales. They expect this deal to bring in $5 billion of extra earnings revenue in the future. All of these benefits are just a few examples of why Microsoft should have acquired Activision instead of letting them go. Of course, there is no doubt that acquiring the company was not cheap. But with all the added benefits they would have received from buying the company, it was worth every penny spent.
Microsoft’s purchase of Activision Blizzard has many benefits for the company and the shareholders. With the acquisition, Microsoft can expand its gaming business and have more earnings potential in the future.