Activision Blizzard Acquisition & Valuation
Activision Blizzard was acquired by Microsoft for $75B in January 2022, a 8.2x multiple on $9.1B of revenue.
Activision Blizzard revenue at acquisition
$9.1B
Last twelve months · Jan 2022
Activision Blizzard revenue multiple at acquisition
8.2x
EV/Revenue · Jan 2022
Activision Blizzard EBITDA multiple at acquisition
26.8x
EV/EBITDA · Jan 2022
About Activision Blizzard
Activision Blizzard is a Santa Monica-headquartered interactive entertainment publisher with franchises including Call of Duty, World of Warcraft, Overwatch, Diablo, and Candy Crush. It reaches players in 190 countries through studios like Blizzard Entertainment, Infinity Ward, Treyarch, and King. Acquired by Microsoft in 2023 for $69 billion, Activision Blizzard supports initiatives like the Call of Duty Endowment, which has placed over 100,000 veterans in jobs. The company lists on Nasdaq as ATVI.
Founded
2008
HQ
Los Angeles, CAWebsite
Status
Acquired
Customer focus
B2C
Revenue model
Product sales
Revenue
$9.1B (Jan 2022)
Valuation
$75B (acquired Jan 2022)
Activision Blizzard Acquisition
Activision Blizzard was acquired by Microsoft for $75B on 18 January 2022.
The acquisition price implies a 8.2x revenue and 26.8x EBITDA multiple on $9.1B of revenue.
Microsoft announced on 18 January 2022 that it would acquire Activision Blizzard for $95.00 per share in cash, an equity value of roughly $75 billion and an enterprise value of $68.7 billion net of Activision's cash. It was the largest acquisition in Microsoft's history and the largest ever in the video game industry. The transaction added the Call of Duty, World of Warcraft, Diablo, Overwatch and Candy Crush franchises to Microsoft's Xbox Game Studios and was framed by Microsoft as providing building blocks for the metaverse and for its Game Pass subscription service. Regulatory review by the US Federal Trade Commission, the UK Competition and Markets Authority and the European Commission delayed the deal well beyond the original target, and it closed on 13 October 2023 after Microsoft agreed to divest cloud-streaming rights for Activision titles outside the European Economic Area to Ubisoft. Activision Blizzard reported net revenue of about $8.8 billion for 2021 and had around 10,000 employees at announcement.
| Acquirer | Date | Type | Price | EV/Revenue | EV/EBITDA |
|---|---|---|---|---|---|
| 18 Jan 2022 | Strategic M&A | $75B | 8.2x | 26.8x |
Sources: npr.org, variety.com
Activision Blizzard Funding History
Activision Blizzard has 1 recorded secondary share sale and no primary funding rounds.
Activision Blizzard funding rounds
| Date | Stage | Investors | Raised | Deal Summary |
|---|---|---|---|---|
| Jul 2013 | Secondary | Davis Advisors; Tencent; Leonard Green & Partners | $2.3B | On 25 July 2013 Activision Blizzard and an investor group announced the purchase of most of Vivendi's 61% stake in the games publisher for a combined US$8.2 billion at US$13.60 per share. Activision Blizzard itself repurchased about 429 million shares for US$5.83 billion, funded with US$1.2 billion of cash and US$4.6 billion of new debt, while ASAC II LP, an investment vehicle led by chief executive Bobby Kotick and co-chairman Brian Kelly, bought roughly 172 million shares for US$2.34 billion. ASAC's backers included Davis Advisors, Leonard Green & Partners, Tencent and a large unnamed global institutional investor, with Kotick and Kelly personally committing US$100 million. Vivendi retained about 83 million shares, or 12%, which it sold in 2014 and 2016, and Activision Blizzard became an independent company controlled by its public shareholders. The transaction closed on 11 October 2013 after a shareholder lawsuit was resolved. Activision Blizzard, publisher of Call of Duty, World of Warcraft and Skylanders, had 2012 revenue of about US$4.9 billion. |
Who has invested in Activision Blizzard?
3 investors have backed Activision Blizzard across its funding rounds, including Tencent, Leonard Green & Partners and Davis Advisors.
Activision Blizzard Investors
| Investor | HQ | Rounds | Role | First check |
|---|---|---|---|---|
| New York City, NY | 1 | Participant | Jul 2013 | |
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Start Free TrialAcquisitions by Activision Blizzard
Activision Blizzard has acquired 3 companies to date.
Last acquisition by Activision Blizzard was on January 25th 2017. Activision Blizzard acquired Omniata for undisclosed valuation.
Latest Acquisitions by Activision Blizzard
| Description | - | Major League Gaming is a New York-headquartered esports network delivering competitive gaming broadcasts via MLG.tv, the MLG Pro Circuit for professional tournaments, and GameBattles matchmaking platform. The company streams events in titles like Call of Duty and Halo to audiences on web, mobile, consoles, and connected TVs globally. | King.com is a Stockholm-headquartered mobile game developer owned by Activision Blizzard since its 2016 acquisition. The company delivers match-three puzzle games such as Candy Crush Saga, which surpassed 3 billion downloads worldwide, alongside Bubble Witch 3 Saga and Farm Heroes Super Saga. King maintains studios in six locations including Barcelona, Bucharest, Malmö, London, and San Francisco. Its titles support cross-platform play across iOS, Android, Facebook, and web browsers in 14 languages. King generates revenue through in-app purchases for boosters and lives, serving a global audience via free-to-play model. Founded in 2003, it pioneered synchronized progress across devices. |
| HQ Country | | |  |
| HQ City | - | New York City, NY | Stockholm |
| Deal Date | 25 Jan 2017 | 5 Jan 2016 | 2 Nov 2015 |
| Valuation | undisclosed | $46M | $5.9B |
| EV/Revenue | |||
| EV/EBITDA | |||
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Activision Blizzard Competitors
Activision Blizzard competitors include listed companies like NetEase, Roblox, Konami and NEXON, and private ones like Moon Active and Epic Games.
| Company | HQ | Status | Revenue | EBITDA | Valuation | Revenue Multiple |
|---|---|---|---|---|---|---|
 Tel Aviv | Private | $1.5B | - | $5B | 3.3x | |
 China | Publicly listed | $17B | $5.8B | $75B | 3.0x | |
| United States | Publicly listed | $4.9B | ($1B) | $35B | 4.9x | |
| Raleigh, NC | Private | $5.7B | - | $23B | 3.9x | |
 Japan | Publicly listed | $3.1B | $1.1B | $18B | 4.9x | |
| Japan | Publicly listed | $3B | $722M | $16B | 3.9x |
Activision Blizzard Public Comps
Activision Blizzard is no longer listed, but its public comps include NetEase, Warner Bros. Discovery, Sea, Nintendo, Take-Two Interactive, Roblox, Universal Music, Liberty Media, Konami and Disney.
| Last FY | EV/Revenue | EV/EBITDA | ||||||
|---|---|---|---|---|---|---|---|---|
| Revenue | EBITDA | Last FY | LTM | 2027E | Last FY | LTM | 2027E | |
| $17B | $5.8B | 3.1x | 3.0x | 8.9x | 7.6x | |||
| $37B | $21B | 2.9x | 2.9x | 5.1x | 12.8x | |||
| $23B | $2.4B | 2.5x | 2.0x | 24.8x | 16.8x | |||
| $15B | $3.4B | 3.3x | 3.3x | 14.2x | 18.1x | |||
| $6.7B | $431M | 6.0x | 5.2x | 92.2x | 29.1x | |||
| $4.9B | ($1B) | 6.9x | 4.9x | (33.7x) | 25.0x | |||
| $14B | $3B | 2.5x | 2.4x | 11.9x | 11.4x | |||
| $4.5B | $1.4B | 6.1x | 5.8x | 19.9x | 23.1x | |||
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Common questions about Activision Blizzard
| When was Activision Blizzard founded? | Activision Blizzard was founded in 2008. |
| Where is Activision Blizzard headquartered? | Activision Blizzard is headquartered in Los Angeles, CA, United States. |
| Is Activision Blizzard publicly listed? | No, Activision Blizzard was acquired by Microsoft in January 2022. |
| Who acquired Activision Blizzard? | Activision Blizzard was acquired by Microsoft in January 2022. |
| How much was Activision Blizzard acquired for? | Activision Blizzard was acquired for $75B in January 2022, a 8.2x revenue multiple. |
| Who are Activision Blizzard's investors? | Activision Blizzard's investors include Davis Advisors, Tencent and Leonard Green & Partners. |
| Which companies are comparable to Activision Blizzard? | Companies comparable to Activision Blizzard include Moon Active, NetEase, Roblox, Epic Games, Konami and NEXON. |
| How many companies has Activision Blizzard acquired? | Activision Blizzard has acquired 3 companies, including Omniata, Major League Gaming and King.com. |
| What was the largest acquisition by Activision Blizzard? | The $5.9B acquisition of King.com in November 2015 is the largest acquisition Activision Blizzard has made to date. |
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