How Will Gamers and Investors Respond to Microsoft’s Acquisition of Activision Blizzard?

English
Beginner
18m

How Will Gamers and Investors Respond to Microsoft’s Acquisition of Activision Blizzard?

How Will Gamers and Investors Respond to Microsoft’s Acquisition of Activision Blizzard?
Hosted by Spotify
Provided by Cold Call
Taught by HBR Presents / Brian Kenny
Free
No fee required
Go To Course

Overview

In January 2022, Microsoft announced its acquisition of the video game company Activision Blizzard for $68.7 billion. The deal would make Microsoft the world’s third largest video game company, but it also exposes the company to several risks. First, the all-cash deal would require Microsoft to use a large portion of its cash reserves. Second, the acquisition was announced as Activision Blizzard faced gender pay disparity and sexual harassment allegations. That opened Microsoft up to potential reputational damage, employee turnover, and lost sales. Do the potential benefits of the acquisition outweigh the risks for Microsoft and its shareholders?