As it has now been revealed, an investor from Activision Blizzard (Call of Duty) has made an offer to buy the Blizzard division (WoW, Diablo 3, Overwatch) either entirely or partially. The offer came on December 6, 2021. However, the board of Activision did not even enter into discussions.
Where does the information come from? The information is official. It comes from a filing to the U.S. Securities and Exchange Commission, the SEC (via sec.gov). There, Activision Blizzard lists the exact timeline of the discussions that took place prior to the acquisition offer from Microsoft to Activision Blizzard.
Who made the offer? Activision Blizzard does not reveal this. Only “Individual B” is mentioned.
Individual B wanted to acquire Blizzard wholly or in parts
What kind of offer was it? Activision states that on December 6, 2021, they received an unsolicited email from Individual B, who implied that he wanted to discuss the potential purchase of the Blizzard business unit – either entirely or in parts. It was said to be a private transaction. The person apparently had additional investors on their side.
This was Activision’s response to the offer: On December 10, the board of Blizzard discussed the offer for the acquisition of Blizzard.
However, concerns were raised about whether the person could credibly handle the size and complexity of such a transaction. Furthermore, it was believed at Activision that there could be disruption if it became known that Activision Blizzard was seeking alternative buyers, as the deal with Microsoft was already underway.
It is further stated that there are fears of negative consequences also because there had previously been dealings between “Individual B” and “Activision Blizzard”.
Ultimately, the board decided that they would not enter into discussions with Individual B.
Thus, Blizzard remains with Activision and is – if everything goes smoothly – to be sold to Microsoft.
Did someone want to buy Blizzard “back”?
Who would be the interesting candidate for Individual B? The most intriguing candidate would surely be Mike Morhaime, the former president of Blizzard. He was considered for years to be “the good soul” of Blizzard.
Morhaime left the studio in 2019: he wanted to start his own company to develop AAA games in a “family atmosphere”. Something like this might also be possible under a Blizzard without Activision.
It is quite conceivable that someone like Morhaime has the contacts and influence to raise millions of US dollars to make such a deal possible. He would surely also have the connections to bring people on board familiar with Blizzard’s major franchises, as he has worked with those people.
Morhaime would also fit the statement that there had been “previous business relationships” between Individual B and Activision Blizzard.
But that is pure speculation – we do not know who the mysterious investor is.
Many Blizzard fans hope for separation from Activision
Why is this important? Blizzard has had some difficulties in recent years with the release and quality of new games. Internally, according to insider reports, there have been conflicts with Activision’s management, as they focus more on money than Blizzard did in earlier times. The motto then was “When it’s done”, quality came above all – Activision is now said to be pushing harder for efficiency, the cost-cutting measures create pressure and lower morale. A significant cut was in 2019 when Activision Blizzard let go of hundreds of employees despite a strong year.
Fans of Blizzard’s early games believe that part of Blizzard’s current problems stem from Activision. They feel that the cost-cutting measures have changed the culture of “their” studio.
There is thus a certain longing for Blizzard to free itself from Activision and continue “on its own”.
If Activision had seriously considered the offer from the mysterious investor, this wishful thinking of the fans might have come true.
The purchase of Activision Blizzard by Microsoft has caused quite a stir:
Microsoft buys Activision Blizzard and gamers worldwide are left speechless
