Activision's Former CEO Reveals TikTok Misstep Led to Microsoft's $68.7B Acquisition
Deal News | Feb 13, 2025 | EIN
In a recent interview, former Activision Blizzard CEO Bobby Kotick disclosed that Microsoft's decision to acquire Activision Blizzard followed their unsuccessful attempt to purchase TikTok. Microsoft was a frontrunner in the TikTok acquisition talks during 2020 amid security concerns raised by the Trump administration. Kotick had expressed interest in acquiring TikTok alongside Microsoft, aiming to preempt a possible ban. Following the unsuccessful bid, Microsoft CEO Satya Nadella and Kotick discussed Activision Blizzard's sale, culminating in Microsoft's $68.7 billion acquisition in 2023 once approved by UK regulators. The podcast also delved into past acquisition interests from EA, highlighting industry dynamics and Kotick's strategic leadership.
Sectors
- Video Games
- Technology
- Social Media
Geography
- United States – The main geography concerning the headquarters of Microsoft and Activision Blizzard, and also relevant due to the U.S. government's involvement in TikTok discussions.
- United Kingdom – UK regulators played a significant role in approving Microsoft's acquisition of Activision Blizzard.
- China – Relevant due to TikTok's parent company ByteDance and the geopolitical aspects influencing the proposed acquisition.
Industry
- Video Games – The core industry of Activision Blizzard, focusing on game development and publishing, notably titles like Call of Duty.
- Technology – Microsoft, as a tech conglomerate, engages in major mergers and acquisitions to expand its digital and gaming ecosystem.
- Social Media – Involvement of TikTok in acquisition discussions highlights the intersection of gaming and social media platforms.
Financials
- $68.7 billion – The purchase price Microsoft paid to acquire Activision Blizzard.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Activision Blizzard | Target Company | Company | A major video game company responsible for popular franchises like Call of Duty and was acquired by Microsoft. |
| Microsoft | Bidding Company | Company | A technology company that acquired Activision Blizzard after failed TikTok acquisition talks. |
| TikTok | Potential Acquisition | Company | A social media platform that was initially targeted for acquisition by Microsoft and Activision Blizzard. |
| Bobby Kotick | Former CEO | Person | The former CEO of Activision Blizzard who participated in the acquisition discussions with Microsoft. |
| Satya Nadella | CEO of Microsoft | Person | Involved in the discussions and strategic decision to acquire Activision Blizzard. |
| Bing Gordon | Former CCO of EA | Person | Discussed past EA interest in acquiring Activision Blizzard during the interview. |
| Entertainment Arts (EA) | Interested Buyer | Company | Previously tried to acquire Activision Blizzard. |