Microsoft to acquire Activision Blizzard to bring the joy and community of gaming to everyone, across every device

Legendary games, immersive interactive diversion, and business experience accelerate growth in Microsoft’s vice business across mobile, PC, console, and cloud.

REDMOND, Wash. and Santa Monica, Calif. – Jan. 18, 2022 – With 3 billion folks actively taking part in games nowadays, and burning by a replacement generation steeped in the joys of interactive diversion, vice is currently the most important and fastest-growing style of diversion. Today, Microsoft Corporation. (Nasdaq: MSFT) proclaimed plans to accumulate Activision Blizzard opposition. (Nasdaq: ATVI), a pacesetter in game development and interactive diversion content publisher. This acquisition can accelerate the expansion of Microsoft’s vice business across mobile, PC, console and cloud and offer building blocks for the metaverse.

Microsoft can acquire Activision Blizzard for $95.00 per share, in AN all-cash dealing valued at $68.7 billion, comprehensive of Activision Blizzard’s web money. once the dealing closes, Microsoft can become the world’s third-largest vice company by revenue, behind Tencent and Sony. The planned acquisition includes picture franchises from the Activision, Blizzard and King studios like “Warcraft,” “Diablo,” “Overwatch,” “Call of Duty” and “Candy Crush,” additionally to international eSports activities through majors vice. the corporate has studios round the world with nearly ten,000 staff.

Bobby Kotick can still function chief operating officer of Activision Blizzard, and he and his team can maintain their concentrate on driving efforts to any strengthen the company’s culture and accelerate business growth. Once the deal closes, the Activision Blizzard business can report back to Phil Herbert Spencer, CEO, Microsoft vice.

“Together we'll build a future wherever folks will play the games they need, just about anyplace they need.”

Mobile is that the largest section in vice, with nearly ninety fifth of all players globally enjoying games on mobile. Through nice groups and nice technology, Microsoft and Activision Blizzard can empower players to fancy the most-immersive franchises, like “Halo” and “Warcraft,” just about any place they need. And with games like “Candy Crush,” Activision Blizzard´s mobile business represents a major presence and chance for Microsoft during this invasive section.

The acquisition additionally bolsters Microsoft’s Game Pass portfolio with plans to launch Activision Blizzard games into Game Pass, that has reached a replacement milestone of over twenty five million subscribers. With Activision Blizzard’s nearly four hundred million monthly active players in one hundred ninety countries and 3 billion-dollar franchises, this acquisition can build Game Pass one in every of the foremost compelling and numerous lineups of vice content within the business. Upon close, Microsoft can have thirty internal game development studios, in conjunction with extra business and esports production capabilities.

The dealing is subject to customary closing conditions and completion of regulative review and Activision Blizzard’s shareowner approval. The deal is anticipated shut|to shut} in twelvemonth 2023 and can be increasing to non-GAAP earnings per share upon close. The dealing has been approved by the boards of administrators of each Microsoft and Activision Blizzard.

Advisors
Goldman Sachs & Co. LLC is serving as monetary consultant to Microsoft and Simpson Thacher & Bartlett LLP is serving as legal counsel. Allen & Company LLC is acting as monetary consultant to Activision Blizzard and Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel.

Webcast details

Microsoft Chairman and chief operating officer Satya Nadella; officer Kotick, CEO, Activision Blizzard; chief operating officer, Microsoft vice, Phil Spencer; and Microsoft Chief money handler Amy Hood can host a webcast for investors and media on Jan. 18, 2022, at 6 a.m. Pacific time/9 a.m. local time concerning this dealing.
Our mission, to attach and interact the planet through epic diversion has ne'er been additional necessary. Through communities nonmoving in our computer game franchisees we have a tendency to modify many legion folks to expertise joy, thrill and accomplishment. we have a tendency to modify social connections through the lens of fun, and that we foster purpose and that means through competitive vice. Video games, not like the other social or diversion media, have the flexibility to interrupt down barriers which will inhibit tolerance and understanding. Celebrating variations is at the core of our culture and ensures we {are able to} produce games for players of numerous backgrounds within the one hundred ninety countries our games are vie.

As a member of the Fortune five hundred and as a part company of the S&P five hundred, we've got a rare documentation of delivering superior shareowner returns for over thirty years. Our sustained success has enabled company} to support corporate social responsibility initiatives that ar directly tied to our franchises. As AN example, our decision of Duty Endowment has helped notice employment for over ninety,000 veterans.

Learn additional data concerning Activision Blizzard and the way we have a tendency to connect and interact the planet through epic diversion on the company´s web site, www.activisionblizzard.com

Forward-looking statements

This presentation contains sure progressive statements at intervals the that means of the “safe harbor” provisions of the u. s. non-public Securities legal proceeding Reform Act of 1995 with regard to the planned group action and business combination between Microsoft and Activision Blizzard, as well as statements relating to the advantages of the group action, the anticipated temporal arrangement of the group action and also the product and markets of every company. These progressive statements typically square measure known by the words “believe,” “project,” “predicts,” “budget,” “forecast,” “continue,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “could,” “should,” “will,” “would,”progressive statements square measure predictions, projections and alternative statements concerning future events that square measure supported current expectations and assumptions and, as a result, square measure subject to risks and uncertainties. several factors may cause actual future events to take issue materially from the progressive statements during this presentation, as well as however not restricted to: (i) the danger that the group action might not be completed in an exceedingly timely manner or the least bit, which can adversely have an effect on Activision Blizzard’s business and also the value of the common shares of Activision Blizzard, (ii)

the failure to satisfy the conditions to the consummation of the group action, as well as the adoption of the contract by the stockholders of Activision Blizzard and also the receipt of sure governmental and restrictive approvals, (iii) the prevalence of any event, amendment or alternative circumstance that would make to the termination of the contract, (iv) the result of the announcement or pendency of the group action on Activision Blizzard’s business relationships, in operation results, and business typically, (v) risks that the planned group action disrupts current plans and operations of Activision Blizzard or Microsoft and potential difficulties in Activision Blizzard worker retention as a results of the group action, (vi) risks associated with amusing management’s attention from Activision Blizzard’s in progress business operations, (vii) the end result of any legal proceedings that will be instituted against Microsoft or against Activision Blizzard associated with the contract or the group action, (viii) the power of Microsoft to with success

integrate Activision Blizzard’s operations, product lines, and technology, and (ix) the power of Microsoft to implement its plans, forecasts, and alternative expectations with regard to Activision Blizzard’s business once the completion of the planned merger and understand further opportunities for growth and innovation. additionally, please talk over with the documents that Microsoft and Activision Blizzard file with the SEC on Forms 10-K, 10-Q and 8-K. These filings establish and address alternative necessary risks and uncertainties that would cause events and results to take issue materially from those contained within the progressive statements set forth during this handout. progressive statements speak solely as of the date they're created. Readers square measure cautioned to not place undue reliance on progressive statements, and Microsoft and Activision Blizzard assume no obligation and don't shall update or revise these progressive statements, whether or not as a results of new info, future events, or otherwise.