February 5, 2023

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Microsoft and Sony are still worth less than they were at the beginning of the year despite the acquisitions

There is a real acquisition wave going on in the gaming sector. The most recent achievement was in the name of Sony. This gaming giant paid $3.6 billion to developer Bungie. The company was responding to Microsoft’s acquisition of Blizzard Activision. The news of the acquisition has not yet resulted in a higher market value for these two companies than it was at the beginning of the year.

Acquisitions in the gaming sector followed each other at a brisk pace in January. first there was The acquisition of Zynga by Take-Two Interactive for $12.7 billion. Moments later, Microsoft surprised the world by announcing that it had acquired Blizzard Activision, a publisher with some popular PlayStation titles in its portfolio. Price: $68.7 billion. Comment from Sony So it cannot be missed. The gaming giant announced earlier this week that it had acquired Bungie.

Advantages of Zynga and Blizzard Activision

Blizzard Activision has already been able to take full advantage of the news of the acquisition. The gaming company’s shares rose 25% to more than $82. Zynga’s stock jumped 50 percent in just days when the deal was announced. As a result, the market capitalization of these two companies is higher than it was at the beginning of the year.

By getting into the hands of Sony and Microsoft, these companies can reach a wider audience. Microsoft can also arrange things in Blizzard Activision. The company has come under fire several times in recent months due to, among other things, infringing behavior in the workplace.

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A shortage of chips and an imminent hike in interest rates

The news of the acquisition did not raise the prices of Microsoft and Sony. After the stock exchanges closed on Wednesday, Microsoft’s stock was worth about 6.4 percent less than it was at the start of 2022. The market capitalization is currently around $2.310 billion. Sony even posted an 11.1 percent drop. The market capitalization is currently around $136 billion.

Just like other stocks, Microsoft and Sony live in turbulent waters. In recent weeks, there has been a lot of volatility in the stock markets due to concerns about rising interest rates and tensions on the border between Ukraine and Russia. The lack of chips is also affecting gaming companies. Sony said during the quarterly results announcement that it expects to sell 11.5 consoles this fiscal year (which ends in March). Previously, the giant assumed the sale of 14.8 million consoles.