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The News On January 18, 2022, Microsoft announced the intention to acquire Activision Blizzard with the vision of bringing the joy and community of gaming to everyone, for $95 per share, which equals a transaction value of $68.7 bn. This is a bit more than eight times of the revenue that Activision Blizzards expect to have in the fiscal year 2022. With this acquisition, Microsoft can add 400 million monthly active users to the already existing 25 million Game Pass holders. Until the acquisition closes, the companies will run independently. After completion of the transaction, Activision Blizzard wil report to Phil Spencer, the newly appointed CEO of Microsoft Gaming. This acquisition makes Microsoft the third largest gaming company by revenue, after Tencent and Sony. The stock markets reacted with a sharp increase of Activision Blizzard shares to about $87, while Microsoft stock largely followed its pre-existing slight downward trajectory. Here my analysis in a brief video. The bigger...