How Much Did Bill Gates Really Pay for Call of Duty?

Hey friend! I know you‘re a huge Call of Duty fan like me, so you must be wondering exactly how much Microsoft shelled out to buy Call of Duty. Well, let me walk you through the details on Microsoft‘s massive $68.7 billion acquisition of Activision Blizzard and what it means for our favorite franchise.

Call of Duty by the Numbers

Just how important is Call of Duty? Well, the franchise has now sold over 400 million copies worldwide across its 19 year history, generating over $30 billion total.

The series at one point reached 40 million monthly active users and has consistently been one of the best selling games year after year. Here are some key stats:

• Call of Duty sales topped 300 million units by 2016.
• 2018‘s Call of Duty: Black Ops 4 sold over 17 million copies in its first 8 months.
• 2020‘s Call of Duty: Black Ops Cold War sold 13.7 million units in its first 9 months.
• 2021‘s Call of Duty: Vanguard sold just under 8 million copies by January 2022.
• Call of Duty Mobile has been downloaded over 150 million times.

Call of Duty has been Activision‘s most valuable asset by far, accounting for around 30-50% of the company‘s $8 billion in annual revenue.

How the Math Breaks Down

When Microsoft announced the acquisition in January 2022, it agreed to buy Activision Blizzard for $95 per share in an all-cash deal.

This valued the company at a massive $68.7 billion, which included taking on only $3.6 billion of Activision‘s debt.

At the time, Activision‘s shares were trading around $65, so Microsoft paid a 45% premium in order to acquire them.

While the exact portion value attributable to Call of Duty isn‘t known, analysts estimate the franchise accounts for 30-50% of Activision Blizzard‘s total value. That would mean Microsoft valued Call of Duty anywhere from $20 to $35 billion.

So in reality, Microsoft seemed willing to pay somewhere between $20 to $35 billion specifically for acquiring Call of Duty rights!

Why Call of Duty Matters So Much to Microsoft

You might be wondering why Microsoft was willing to shell out tens of billions just for Call of Duty. Well there‘s a few key reasons this franchise is so important:

Mobile Gaming – Call of Duty Mobile is one of the most successful mobile games ever with over 150 million downloads. Mobile gaming revenue is expected to overtake console gaming soon, so Call of Duty gives Microsoft a huge presence here.

Esports – The Call of Duty League has developed into a premier esports attraction with millions of viewers and prize money. Microsoft can expand the CoD esports ecosystem further.

Game Pass – Adding new Call of Duty releases to Xbox Game Pass on launch day would drive tons of subscriptions. Activision likely wouldn‘t agree to this without being acquired.

Cloud Gaming – Call of Duty integration with Xbox Cloud Gaming will allow Microsoft to reach millions more players by streaming on phones/tablets.

As you can see, Call of Duty is extremely valuable in terms of its mobile presence, competitive gaming scene, ability to drive subscriptions, and cloud gaming potential. That‘s why it was worth tens of billions to Microsoft!

Who Profits from This Blockbuster Deal?

Activision Blizzard shareholders are obviously thrilled about this deal given the huge premium Microsoft paid. But who specifically stands to gain the most?

Activision CEO Bobby Kotick is rumored to be receiving around $400 million for his shares in the company. Not bad!

Major institutional shareholders also owned large portions of Activision stock, including:

• Fidelity – 14.1% stake worth $5.9 billion
• BlackRock – 9.6% stake worth $4 billion
• Vanguard – 7.6% stake worth $3.2 billion

So big investment companies like these will walk away with billions from the sale. Microsoft is clearly willing to pay a hefty price to bolster their gaming lineup with blockbuster franchises like Call of Duty, all while denying rivals like Sony access to such a valuable property.

What Does the Future Hold for Call of Duty?

While the exact sale price might not ever be revealed, it‘s safe to say Microsoft valued Call of Duty somewhere in the $20 to $35 billion range.

That gives you an idea just how important Call of Duty is as the world‘s largest gaming franchise – it‘s literally worth "tens of billions" when you consider its massive fanbase across consoles, mobile and esports.

And if you ask me, the future looks bright for Call of Duty now that it has the full resources of Microsoft behind it. Big investments into mobile gaming, exclusive content for Xbox Game Pass, major esports events and new metaverse experiences could be on the horizon.

One thing‘s for sure, as Call of Duty fans, both you and I will be eagerly awaiting what‘s next for Activision‘s crown jewel franchise under its new Microsoft ownership! The sky‘s the limit.

Let me know if you have any other thoughts or questions!