Takeaways:
- Microsoft announces its largest acquisition yet: Activision for $68.7B ($95/share) — in an all cash deal.
- The sheer size of this transaction underscores the adage that content is king is stronger than ever. Given the significance of gaming in the metaverse, we see this as the most significant metaverse-based news since Facebook’s name change. Getting the deal done won’t be easy as lawmakers will likely take offense given Microsoft’s most recent aggressive step into gaming.
- In the end, we believe Microsoft prevails and gets the deal done. That said, don’t hold your breath — this will likely take 6 months to sort itself out.