Activision Blizzard stocks shot up. The company is recovering from the crisis that has followed it since 2020, and its purchase by Microsoft makes the stock market boil under the lid.
It’s hard not to have the impression that in recent years Activision Blizzard is mainly Activision, with Blizzard far behind. The creators of Diablo and Warcraft crawled into a reality full of unfortunate, grotesque and compromising errors. Some of them turned into moral scandals. According to some, they allowed Microsoft to complete the historic purchase, despite official denials.
Let’s go back to 2020. The highly anticipated Shadowlands expansion for World of Warcraft is like a knife in the hearts of fans. WoW producers are destroying characters beloved for decades, losing control over the coherence and logic of their own universe. Unfortunately, this is not the only powerful blow to the world of Warcraft at that time. In 2020, the terrible Warcraft 3 Reforged is released.
Blizzard irritated fans not only with released games, but also with upcoming projects. The cult “don’t you have phones?” in the context of the mobile Diablo Immortal, it has become a symbol of Blizzard’s detachment from its own community. The publisher’s strong ties with the Chinese administration did not improve the company’s image.
If that wasn’t enough, a moral scandal broke out at Activision Blizzard. An American court accused the company of mobbing and a toxic work environment. The situation was so bad that players migrated en masse from World of Warcraft to the competitive Final Fantasy XIV, and also organized protests inside Blizzard’s games. An absolute visual nightmare.
When Blizzard was in a giant hole, a historic deal took place. The company is bought by Microsoft.
Microsoft has decided to acquire Activision Blizzard for a record $ 69 billion. This is the largest sum ever put on the table in the entire history of the gaming industry. The high-profile deal benefited the disgraced management of the company, headed by Bobby Kotick, which has since gone into the shadows. New, although not always serious and professional people came to the fore.
The acquisition of Activision Blizzard turned out to be not so simple. Sony has started a legal dispute with Microsoft, with antitrust institutions around the world embroiled in the process. During this conflict, Blizzard released as many as three games: mobile Diablo Immortal, free Overwatch 2 and dragon WoW: Shadowflight. However, everyone felt in their bones that the project that would sink or redeem this producer would be Diablo 4.
They understood that at Blizzard too. Acquisition or not, the company didn’t want to be just a shadow for Activision and Call of Duty. She had to build a strong subjectivity anew, and only the iconic brand could help in this. Sacrifices on demonic altars brought results, as Diablo 4 turned out to be a review and sales hit. The title earned over $666 million in 5 days, thus setting a new record for the publisher.
Blizzard built the success with their own hands, but ATVI shot up the stock market thanks to Microsoft.
With the success of Diablo 4, Blizzard was able to look its biggest fans straight in the eye for the first time in several years. The producers proved – also to themselves – that they can still reach those with whom they built greatness in the 90s. And although D4 is unlikely to become such a cult game as Diablo 2, Blizzard will be eaten by Microsoft with a raised visor.
The success of Diablo 4 meant that ATVI (Activision Blizzard on the stock market) broke out of the stock market stagnation a bit. However, only Microsoft’s actions are able to make the price of this company resemble a mountain wall. This was perfectly visible in January 2022, when Microsoft announced its decision to take over. In a matter of days, ATVI’s stock soared from a paltry $57 to $81.
Now that a US court has dismissed the Federal Trade Commission’s objection to the acquisition of Activision Blizzard, Microsoft is once again pulling up ATVI. The share price exceeded $92. This is the highest result in a year – that is, when MS announced the purchase of Diablo and Call of Duty producers.
If both Microsoft-built tops were removed, ATVI would be left with a valuation of $60 a share. Still twice as much as the current valuation of such Ubisoft, but the result would be nothing compared to the glory days of the company from early 2021, when over $100 was paid per share. Microsoft buys below this price, paying $95 each.
Analyzing stock market fluctuations, it’s hard not to get the impression that it’s not Diablo, not WoW and not Overwatch, but Microsoft that turns Activision Blizzard into a princess that the stock market players pay attention to. However, this is definitely not a bride, because both parties are on the last straight before consummating the historic marriage. Sona’s objection, though voiced at the altar, was ultimately of little avail.
2023-07-16 18:00:01
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