Activision Blizzard, Inc. is a Microsoft-owned video game publisher comprising Activision, Blizzard Entertainment, and King. Microsoft completed the acquisition on October 13, 2023, ending Activision Blizzard's period as a separately listed public company.
Standalone financial record
The last complete standalone annual report covered FY2022. Activision Blizzard reported $7.528 billion in net revenues and $1.513 billion in net income. In-game, subscription, and other revenue was $5.886 billion, while product sales were $1.642 billion. Post-acquisition results are included in Microsoft reporting, so this profile does not treat Microsoft segment figures as standalone Activision Blizzard revenue.
Business model
Before the acquisition, Activision Blizzard generated revenue from premium game sales, digital downloads, in-game purchases, battle passes, subscriptions, mobile advertising, and licensing. Activision centers on Call of Duty, Blizzard operates franchises including Warcraft, Diablo, Overwatch, and StarCraft, and King develops mobile games led by Candy Crush.
Predecessor founders and formation
Activision was founded in 1979 by Jim Levy and former Atari programmers David Crane, Larry Kaplan, Alan Miller, and Bob Whitehead. Allen Adham, Michael Morhaime, and Frank Pearce founded Silicon & Synapse in 1991; that studio became Blizzard Entertainment. Activision Blizzard itself was created in July 2008 through the combination of Activision and Vivendi Games.
King and mobile expansion
Activision Blizzard completed its acquisition of King Digital Entertainment on February 23, 2016 for $18 per share and a total equity value of $5.9 billion. King added a mobile free-to-play business and became a third operating pillar alongside Activision and Blizzard.
Microsoft acquisition and leadership
Microsoft announced in January 2022 that it would pay $95 per share in an all-cash transaction valued at $68.7 billion including Activision Blizzard's net cash. The acquisition closed on October 13, 2023. Bobby Kotick remained through the transition and departed on December 29, 2023. The acquired businesses are within Microsoft Gaming under CEO Phil Spencer rather than under a new standalone Activision Blizzard CEO. Johanna Faries became President of Blizzard Entertainment effective February 5, 2024.
Post-acquisition distribution
During the first year after closing, Microsoft added Activision Blizzard games including Diablo IV and Call of Duty: Modern Warfare III to Game Pass and expanded cloud availability. Blizzard also renewed its NetEase publishing agreement, returning major Blizzard franchises to mainland China.
Competitive position and risk
The portfolio spans console, PC, and mobile, with revenue models ranging from premium releases to subscriptions, in-game purchases, and advertising. Its main strategic risk is concentration in a limited number of franchises, making release quality and sustained player engagement important to performance.
