by Activision Blizzard (NASDAQ: ATVI), set to merge with Microsoft, reported its spectacular second-quarter 2023 financial results. These figures have set new records, proving the company’s unyielding commitment to pushing the boundaries of gaming entertainment.
Record-Breaking Revenues
Activision announced astounding net revenues of $2.21 billion for the second quarter of 2023, well above predictions. Blizzard also had a record quarter with net bookings of over $1 billion for the first time.
Strong performances throughout the company’s varied portfolio of gaming properties contributed to this amazing achievement.
The eagerly anticipated Diablo IV topped all other Blizzard games in sold-through units during the equivalent release stage at the end of the second quarter.
In June over 10 million players immersed themselves in the rich universe of Diablo IV, logging an astounding total of over 700 million hours of gameplay.
The game’s retention statistics, in particular, have been remarkably strong, demonstrating both its enduring appeal and the long-lasting engagement it has built among its devoted player base.
Call of Duty, one of Activision’s most renowned titles is approaching its 20th anniversary in October. The ambitious Call of Duty: Warzone Mobile is making progress in regional testing and promises an immersive cross-platform experience. Major new installments for PC and console are also in the works.
According to Dexerto, Warzone 2, a popular battle royale game owned by Activision, reached a total of 25 million players in only 5 days.
Sullygnome.com statistics show that over 73 million watched hours have been logged on Twitch over the past 90 days for Warzone 2.
Candy Crush, another game owned by Activision, has collaborated with the film BARBIE to create in-game experiences with exclusive content available only to Candy Crush players.
The Rise of Esports
Activision Blizzard’s business plan is now centered on the inexorable expansion of esports.
The business’s dedication to creating competitive gaming communities around its blockbuster games, including “Overwatch” and “Call of Duty,” has led to explosive growth in the esports industry.
Millions of fans tuned in to watch various esports competitions throughout the second quarter, solidifying Activision Blizzard’s position as the industry’s undisputed leader.
As esports gain popularity, the business is prepared to take advantage of this expanding market and strengthen its brand recognition.
According to ResearchAndMarkets, the global esports industry is anticipated to reach $12.4 billion by 2030.
With its strong foothold in popular video games, Activision is poised to maintain a prominent role in the Esports sector for years to come.
Microsoft Merger
On January 18, 2022, Microsoft announced its plan to acquire Activision Blizzard at $95.00 per share in an all-cash transaction, which has been approved by both companies boards and stockholders.
On July 18, 2023, Activision Blizzard and Microsoft made further agreements related to the merger. They waived certain rights to terminate the deal if not completed before October 18, 2023.
The termination fee payable to Activision Blizzard increased to $3.5 billion after August 29, 2023, and $4.5 billion after September 15, 2023.
Additionally, they amended Activision Blizzard’s commercial Xbox arrangements with Microsoft, offering up to $250 million for fiscal years 2023 and 2024.
Activision Blizzard’s Board of Directors also declared a cash dividend of $0.99 per share for fiscal year 2023, to be paid on August 17, 2023, not contingent on the transaction’s closing.
