Microsoft Bets $70 Billion To Crush The ‘Future Of Facebook (Meta)’

The title of biggest acquisition by Microsoft now goes to Activision. The whopping $70 billion acquisition will help Microsoft compete with Facebook (Meta) for the dominance in metaverse, what is being called "the future of social media". By paying top dollars to acquire Activision Microsoft has apparently sent a message to all rivals to start gearing up for the next battle.

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After much speculations and rumors, Microsoft has officially declared war against what’s is being touted as ‘Future of Facebook (Meta)’. On Tuesday, Microsoft agreed to acquire Activision Blizzard, the video game company behind popular games like “Candy Crush” and “Call of Duty” for a whopping $68.7 billion in cash. This is the biggest acquisition by Microsoft in its 46-year history and is being seen as a huge bet to stay dominant in the future.

Before acquiring Activision, LinkedIn was the largest acquisition made by Microsoft for $26.2 billion.

With the latest acquisition, Microsoft is now firmly in control of the metaverse, the new internet that merges traditional online and virtual reality. Market pundits believe that metaverse would be the next battleground for companies, including Facebook, which is committed to striving and thriving to secure its dominance.


The deal will also throw a challenge for Washington regulators, both Democrats and Republicans, who have been trying to limit the power of technology giants.

Microsoft seems to be refuting all claims and controversies related to workplace culture at Activision by buying the company. Activision was facing allegations of harassment and discrimination which senior executives did not address. Activision shares have fallen 27 percent after California sued it over the matter. Premarket trading has seen the shares of the game maker rise by nearly 40%. Microsoft shares dropped by 1 percent following the announcement.

Bobby Kotick, the long-serving chief executive of Activision, emerged as the strongest man from this deal which can zip the mouth of critics who sought to expel him over the controversy. Kotick convinced the top management of Microsoft to pay $95 per share, which is roughly 45 percent more than the stock price of his company before the announcement. No prize for guessing, he will remain in control of the company and continue to run the show.

Microsoft would acquire Activision’s almost 400 million monthly gamers and give them access to some of the most loved games around the world. This will make Microsoft a key player in the metaverse – a digital world that is the talk of the town and almost every tech giant is looking to gain control over it. As of today, Meta, formerly known as Facebook, appears to be the front runner in the space as the company is reportedly in the final stage of testing and launching its metaverse. Activision, on the other hand, will have access to an extensive array of programming talent and artificial intelligence by combining with Microsoft.

The acquisition of Activision will allow Microsoft to compete strongly with Facebook by adding Activision. After the recent rebranding of Facebook’s parent company Meta, the intentions and commitment of Zuckerberg & team are quite evident.  Activision’s acquisition could help Microsoft to boost the virtual reality offerings of its Xbox unit which is in direct competition with Oculus that Facebook acquired a few years ago.


Satya Nadella (Microsoft’s chief executive) stated in a statement that “Gaming” is the most exciting and dynamic category of entertainment on all platforms and would play a key part in the development and maintenance of metaverse platforms.

After missing the bus of social media and smartphones, Microsoft is in no mood to miss another bus of opportunity that is estimated worth hundreds of billions of dollars. Undoubtedly, the Redmond giant would be transformed by the deal. Microsoft has owned Xbox and the studios behind Minecraft, and Halo. However, the company is still primarily focused on corporate users of software such as Office 365 and Azure, its cloud computing business, which competes with Amazon and Google. By making such a large acquisition, Microsoft is apparently trying to pass a string message to Facebook – and other arch-rivals – to be prepared for the next battle to dominate the future of social media.


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