Monday, June 5

Activision Blizzard shares jump more than 25% after announcement of purchase by Microsoft

“The acquisition of Activision will help launch Microsoft’s broader ambitions in video games and its migration into the metaverse, as video games will be, in our view, the first monetization sector of the metaverse”, highlighted Dan Ives, of the firm Wedbush.

Parallel universe accessible through virtual reality and augmented reality, the metaverse is described as the future of the internet by technology giants, especially Facebook.

Microsoft boss Satya Nadella said on his side when announcing the purchase that video games will play a “determining role” in the development of the metaverse.

Activision’s video game offerings, such as “Call of Duty” and “Overwatch,” also give Microsoft’s Xbox platform an edge over Sony’s Playstation., which for years has enjoyed a more constant stream of exclusive video games.

“This acquisition will accelerate the growth of Microsoft’s gaming business across mobile, PC, console and cloud and provide building blocks for the metaverse,” Microsoft said in a statement.

Activision, the California-based maker of “Candy Crush,” has been hit by employee protests, resignations and a lawsuit that alleges it allowed toxic working conditions and sexual harassment against women. Despite the purchase, Bobby Kotick will remain CEO of Activision Blizzard.

In the past seven months, the company has received about 700 reports of employee concerns about sexual assault or harassment or other misconduct, in some cases separate reports about the same incident, The Wall Street Journal reported.

Nearly 20% of Activision Blizzard’s 9,500 employees have signed a petition calling for CEO Bobby Kotick to resign.