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Strategic Motivation and Effectiveness Analysis of Microsoft's Acquisition of Activision Blizzard - An Empirical Study Based on Valuation and M&A Performance

In: Proceedings of the 2025 International Conference on Financial Innovation and Marketing Management (FIMM 2025)

Author

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  • Tong Tong

    (Massey College, Nanjing University of Finance and Economics)

Abstract

As global technology companies become increasingly competitive in content and platform integration, strategic mergers and acquisitions (M&A) have become an important means for large corporations to rapidly expand their ecosystems and technological capabilities. In 2022, Microsoft announced that it had acquired Activision Blizzard, a globally recognized gaming company, for approximately $68.7 billion, making it the largest M&A in the gaming industry to date. This paper takes this M&A event as the research object and systematically analyzes the motivation, valuation reasonableness and its impact of Microsoft's acquisition of Activision Blizzard. By analyzing the financial impact and market reaction of Microsoft's acquisition of Blizzard, this paper points out that the deal will not only help Microsoft strengthen its layout in the mobile game and cloud game market, but also further enhance its content ecosystem and subscription service integration capability. The study shows that the acquisition embodies the typical strategic path of platform-based technology enterprises to acquire content resources and realize user ecological stickiness through acquisition, which is an important revelation for the future trend of M&A in the technology industry.

Suggested Citation

  • Tong Tong, 2025. "Strategic Motivation and Effectiveness Analysis of Microsoft's Acquisition of Activision Blizzard - An Empirical Study Based on Valuation and M&A Performance," Advances in Economics, Business and Management Research, in: Maizaitulaidawati Md Husin (ed.), Proceedings of the 2025 International Conference on Financial Innovation and Marketing Management (FIMM 2025), pages 1239-1252, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-874-5_141
    DOI: 10.2991/978-94-6463-874-5_141
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