KeyBanc senior analyst Michael Turits predicts strong revenue growth for both Xbox and Activision-Blizzard by 2023.
Microsoft's $68.7 billion buyout of Activision-Blizzard is expected to close in FY23. By that time, analysts predict both companies will make substantial revenue growth. Keybanc's Michael Turits expects Activision-Blizzard to break the $10 billion revenue mark for the first time in history with a 13-year CAGR growth rate of 6.43%, possibly driven by cost-saving synergies within Microsoft's games division. Activision's last financials show $8.5 billion estimated revenues for calendar 2021.
Xbox gaming is likewise expected to jump to $16.9 billion, representing a 10% increase over the last reported FY21 period. Microsoft's games segment delivered a record $15.37 billion in FY21 driven by hardware and software synergy surges across game and console sales and subscriptions.
Neither Microsoft nor Activision-Blizzard have delivered revised forecasts to reflect the merger.
Multiple law firms are also scrutinizing and investigating the merger for possible federal securities law violations.
- > NEXT STORY: D2 Act 6: Streamer indicates D2R expansion possible with new act
- < PREVIOUS STORY: Law firms investigate motivations behind Activision-Blizzard buyout