How Microsoft’s Activision Blizzard Deal Is Transformative
Microsoft sealed a “truly transformative” deal two weeks ago when it cleared regulatory hurdles to buy Activision Blizzard, the maker of hugely popular video games like Candy Crush and Call of Duty, according to Wharton management professor Harbir Singh, who is also co-director of the Wharton’s Mack Institute for Innovation Management. “The $68.7 billion deal is a very, very large step,” he said on the Wharton Business Daily radio show that airs on SiriusXM.
The purchase checks off several boxes at once that make it a “remarkable deal,” as Singh put it. With Activision in its portfolio, Microsoft can leapfrog from its modest Xbox platform to one that is several fold bigger, he said. It can also gain a “time-to-market” advantage that organic growth cannot provide like an acquisition can, he said.
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