Blockbuster deal

Several media including CNN reported Microsoft’s blockbuster acquisition in the beginning of 2022. Microsoft is going to acquire video game developer Activision Blizzard and the deal could pose a serious threat for Sony. In fact, the potential $70 billion deal had a negative impact on shares of Sony. They plummeted nearly 13% in Tokyo on January 19th, and it was the worst plunge since 2008.

It is true that Microsoft already owns successful franchises like “Halo”. However, the Activision Blizzard deal would add popular series including “Call of Duty” and “World of Warcraft”. Amazingly, the games have nearly 400 million monthly active players.

The transaction would make Microsoft the world’s third-largest gaming company by revenue, behind Tencent and Sony, in a statement. On the other hand, nearly 30% of Sony’s revenue comes from games and network services, according to its most recent earnings report. The deal could be a huge threat to the Japanese company.

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