Activision Blizzard facts for kids
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Activision Blizzard headquarters in Santa Monica
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| Subsidiary | |
| Traded as | NASDAQ: ATVI (2008–2023) |
| Industry | Video games |
| Predecessors |
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| Founded | July 9, 2008 |
| Headquarters |
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US
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| Products |
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| Revenue | US$7.53 billion (2022) |
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Operating income
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US$1.67 billion (2022) |
| US$1.51 billion (2022) | |
| Total assets | US$27.4 billion (2022) |
| Total equity | US$19.2 billion (2022) |
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Number of employees
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17,000 (2023) |
| Parent |
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| Divisions | Activision Blizzard Consumer Products Group Activision Blizzard Esports Activision Blizzard Media |
| Subsidiaries | |
Activision Blizzard, Inc. is a huge American company that makes and publishes video games. It is based in Santa Monica, California. This company is like a parent company for three main groups: Activision, Blizzard Entertainment, and King.
Activision Blizzard was created in July 2008. This happened when two big companies, Activision, Inc. and Vivendi Games, joined together. The company owns many game studios. Some of these include Infinity Ward, Treyarch, and Sledgehammer Games.
Activision Blizzard is famous for many popular game series. These include Call of Duty, Crash Bandicoot, Guitar Hero, Skylanders, Spyro, and Tony Hawk's. They also make Diablo, Hearthstone, Heroes of the Storm, Overwatch, StarCraft, World of Warcraft, and Candy Crush Saga.
Blizzard Entertainment has also put a lot of effort into esports. Esports are organized video game competitions. Their games Overwatch and Call of Duty are very popular in these events. Many Activision Blizzard games have broken sales records. By 2018, it was the biggest game company in the Americas and Europe. This was based on how much money they made and their value in the stock market.
In October 2023, Microsoft bought Activision Blizzard for a huge amount of money. Now, Activision Blizzard is part of Microsoft Gaming. It works alongside other game companies like Xbox Game Studios and ZeniMax Media.
Contents
How Activision Blizzard Started and Grew
The Beginning: Activision and Vivendi Games (2007–2008)
The first Activision company started way back in 1979. It made games for the Atari Video Computer System. In 1988, the company tried making other software and changed its name to Mediagenic. This didn't go well, and they lost a lot of money.
In 1991, a group of investors led by Bobby Kotick bought the company. Kotick helped the company get back on track. He changed the name back to Activision and moved it to Santa Monica, California. By 1997, Activision was making money again.
Over the next ten years, Kotick helped Activision grow a lot. They bought about 25 other game studios. This led to Activision publishing many successful game series. Some of these were Tony Hawk's, Call of Duty, and Guitar Hero.
Around 2006, online multiplayer games, called massively multiplayer online (MMO) games, became very popular. These games bring in money all the time, not just from a single purchase. Activision didn't have an MMO game. They also faced tough competition from companies like Electronic Arts.
Kotick talked to Jean-Bernard Lévy, the head of a French media company called Vivendi. Vivendi had a games division called Vivendi Games. This division included Sierra Entertainment and Blizzard Entertainment. Kotick wanted to get access to Blizzard's super popular MMO, World of Warcraft.
Lévy suggested merging Vivendi Games with Activision. But Vivendi wanted to be the main owner of the new company. Kotick was worried about losing control of Activision. However, after talking to Blizzard's CEO, Mike Morhaime, Kotick realized this merger could help them enter the growing video game market in China.
Activision's board agreed to the merger in December 2007. The new company was named Activision Blizzard. It kept its main office in California. Bobby Kotick became the new president and CEO. The merger was approved in April 2008. On July 9, 2008, the deal was completed for about $18.9 billion.
Vivendi became the main owner of Activision Blizzard, with 54% of the shares. The rest of the shares were available for trading on the NASDAQ stock market. After the merger, Vivendi's other game divisions, like Sierra, stopped operating. Some of Sierra's games, like Crash Bandicoot and Spyro, were kept and are now published by Activision.
New Games and Sales Records (2009–2012)
In 2010, the game studio Bungie signed a 10-year deal to publish games with Activision Blizzard. By the end of 2010, Activision Blizzard was the biggest video game publisher in the world.
In 2011, Activision Blizzard released Call of Duty: Modern Warfare 3. It made $400 million in the US and UK in just 24 hours. This made it the biggest entertainment launch ever at that time. The Call of Duty series broke this record for three years in a row. Call of Duty: Black Ops made $360 million on its first day in 2010. Call of Duty: Modern Warfare 2 made $310 million in 2009. Later, Call of Duty: Black Ops III made $550 million worldwide in its opening weekend in 2015.
In 2011, Activision Blizzard also launched its Skylanders series. This series became famous for creating a new type of game called "toys-to-life." In these games, real-life toys connect to the video game. The first game, Skylanders: Spyro's Adventure, was nominated for "Game of the Year" and "Innovative Toy of the Year" awards. Skylanders games were released on consoles, PC, and mobile devices.
Becoming Independent and More Growth (2013–2014)
On July 25, 2013, Activision Blizzard announced a big change. They bought back 429 million shares from Vivendi for $5.83 billion. This meant Vivendi's ownership dropped from 63% to 11.8%. By September, Vivendi was no longer the main owner of Activision Blizzard. Activision Blizzard became an independent company.
Bobby Kotick and Brian Kelly kept a large share of the company. Kotick remained the president and CEO. Brian Kelly became the chairman. The deal was completed on October 12, 2013. Vivendi sold off its remaining shares over the next two years.
Activision Blizzard released a new game called Destiny on September 9, 2014. It made over $500 million in sales on its first day. This set a record for the biggest first-day launch of a new game series. On November 5, 2013, the company released Call of Duty: Ghosts. This game sold $1 billion to stores on its first day. In 2014, Activision Blizzard was the fifth largest gaming company in the world based on how much money it made.
Joining the S&P 500 and New Divisions (2015–2021)
On August 28, 2015, Activision Blizzard joined the S&P 500 stock index. This is a list of 500 large US companies. Activision Blizzard was one of only two gaming companies on the list at that time.
In September 2015, they released a new Skylanders game that added vehicles to the "toys-to-life" category. Two days later, Sony announced that Destiny: The Taken King broke records for downloads on PlayStation.
Activision Blizzard bought the social gaming company King in November 2015 for $5.9 billion. King is the company that created the popular mobile game Candy Crush Saga.
Also in November 2015, Activision Blizzard started Activision Blizzard Studios. This new part of the company was created to make movies and TV shows based on Activision Blizzard's game series.
In June 2017, Activision Blizzard joined the Fortune 500 list. This list includes the largest companies in the United States. They were only the third gaming company ever to make this list.
In early 2019, Activision Blizzard announced some changes. They had a record year for money earned. However, they decided to let go of about 775 employees, which was about 8% of their staff. This was to focus more on their main games and development teams. They also ended their deal with Bungie for Destiny 2.
In April 2020, Daniel Alegre became the new president of Activision Blizzard. During the middle of 2020, the company's online game sales grew a lot. This was because more people were playing games online during the COVID-19 lockdowns. By January 2021, the company's value was estimated at $72 billion.
In February 2021, the Public Investment Fund of Saudi Arabia bought 14.9 million shares of Activision Blizzard. This was worth about $1.4 billion. In April 2021, Bobby Kotick agreed to stay as CEO until April 2023. He also agreed to a 50% pay cut.
Workplace Issues and Microsoft Acquisition (2021–Present)
In July 2021, a government department in California filed a lawsuit against Activision Blizzard. This lawsuit was about concerns regarding fairness in the workplace and how employees were treated. The company later reached a settlement of $54 million in December 2023 to address issues related to pay and promotion differences.
On January 18, 2022, Microsoft announced it would buy Activision Blizzard for $68.7 billion. This was a huge deal! Activision Blizzard's stock price went up almost 40% that day. This purchase made Microsoft the third-largest gaming company in the world. It became the largest one based in the Americas.
Activision Blizzard's shareholders approved the deal in April 2022. Many countries approved the merger. However, the United States' Federal Trade Commission and the United Kingdom's Competition and Markets Authority had concerns. They worried the merger might reduce competition.
To solve these concerns, Microsoft agreed to let another company, Ubisoft, handle the cloud gaming rights for Activision Blizzard's games. This helped clear the way for the deal. The acquisition was completed on October 13, 2023.
Activision Blizzard reported its last financial results as an independent company on February 6, 2023. They reported $7.54 billion in revenue. As part of the deal, Bobby Kotick announced he would step down as CEO. He left Activision Blizzard on December 29, 2023.
In May 2022, quality assurance (QA) testers at Activision Blizzard's Raven Software studio voted to form a union. They became the Game Workers Alliance (GWA). This was a big step for workers in the video game industry.
Following this, in July 2022, the QA team at Blizzard Albany also voted to unionize. This formed the second union at an Activision Blizzard studio.
In February 2023, Activision Blizzard told employees they would end their full-time remote work policy. Employees would need to come back to the office. In November 2023, QA staff in Austin, Eden Prairie, and El Segundo were told they would return to the office full-time in 2024. Some employee groups felt this decision was pushing people out.
On March 8, 2024, 600 QA testers at three Activision studios formed a new union. They called it "Activision Quality Assurance United-CWA." They voted to unionize, making it the largest video game union in the United States. Microsoft officially recognized this union. On July 24, 2024, 500 artists, designers, engineers, producers, and QA testers who work on World of Warcraft also voted to unionize.
Popular Games from Activision Blizzard
Activision Blizzard makes many well-known games. Here are some of the most popular ones:
- List of Activision video games
- List of Blizzard Entertainment games
- List of King games
How Activision Blizzard is Organized
Activision Blizzard is split into three main parts:
- Activision: This part handles making, producing, and selling video games from its studios. It also manages the Call of Duty League.
- Blizzard Entertainment: This part handles making, producing, and selling Blizzard's games. It also runs Battle.net, organizes BlizzCon, and manages the Overwatch League.
- King: This part focuses on making and selling mobile games, like Candy Crush Saga.
Here's a look at some of the studios under Activision Blizzard:
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Esports: Competitive Gaming
Activision Blizzard owns popular game series like Call of Duty and StarCraft. These games are very popular in esports competitions. On October 21, 2015, Activision Blizzard announced a new esports division. This division was created to focus on competitive gaming.
In November 2016, Blizzard Entertainment launched the Overwatch League. This is a professional video gaming league. The first season started in 2017 with 12 teams. The league is set up like traditional sports leagues. It even has owners from traditional sports teams.
The first Overwatch Grand Finals were held in Brooklyn in July 2018. Over 10.8 million people watched worldwide. The league hoped to have 18 teams in 2019 and eventually 28 teams globally.
In 2018, Activision Blizzard made a deal with The Walt Disney Company. This allowed Overwatch League games to be shown on ESPN and Disney XD TV channels. The company also made a deal with Google. This meant all Activision Blizzard esports events, including Call of Duty and Overwatch events, would be streamed on YouTube. They also use Google's cloud services for their games. This deal with YouTube was worth about $160 million.
Due to fewer viewers and lower profits, Activision eventually closed Major League Gaming by January 15, 2024.
Call of Duty Endowment: Helping Veterans
Since 2009, Bobby Kotick started the Call of Duty Endowment (CODE). This program helps military veterans find good jobs. By 2013, CODE started a "Seal of Distinction" program. This program recognizes non-profit groups that successfully help veterans find jobs. These groups receive a $30,000 grant.
The goal of CODE is to help 100,000 US and UK veterans find good jobs by 2024. The endowment helps soldiers move into civilian careers after their military service. It does this by giving money to non-profit groups. It also helps people understand how valuable veterans are in the workplace.
Images for kids
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Bobby Kotick (pictured in 2012) was the CEO of Activision Blizzard from 2008 to 2023
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Activision Blizzard at Gamescom 2013, showing games like Call of Duty: Ghosts and Skylanders: Swap Force.
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Activision's former headquarters in Santa Monica, which also served as Activision Blizzard's headquarters.
See also
In Spanish: Activision Blizzard para niños
