Not bad money! Microsoft will buy Activision Blizzard behind it for nearly $70 billion: $130 billion in cash reserves

Microsoft recently announced the acquisition of Activision Blizzard, the transaction amount of up to $68.7 billion, which is not only the most expensive acquisition in the game industry, but even in the entire technology field is the highest, the previous record is the 2016 Dell acquisition of EMC, spent $67 billion.

Not only has the amount set a world record, but this acquisition has surprised the world with one thing - Microsoft's acquisition of Activision Blizzard is an all-cash transaction, which is also rare, usually such a huge acquisition will be carried out in a large number of stocks + a small amount of cash, because the nearly $70 billion cash acquisition is a very test of the company's operations.

But this is not a problem for Microsoft at all, because Microsoft is not short of money, according to the company's financial report information, as of June 30, 2021, Microsoft has cash, cash equivalents and short-term investments totaling $130.3 billion, cash acquisition Activision Blizzard is more than enough, and there is still about half of cash left.

Not only that, But Microsoft's annual profitability is also amazing, with revenue of $168.1 billion in fiscal 2021, an increase of 18% year-on-year, and net profit of $61.2 billion, an increase of 28% year-on-year.

Even without a huge amount of cash, Microsoft's nearly 70 billion yuan of acquisition of Activision Blizzard will only take 14 months to earn back, and the acquisition will not be completed until June next year, so making this money back during this period is no pressure for Microsoft.

The deal is worth as much as $3 billion in liquidated damages from Microsoft alone — and if the deal is not completed for reasons such as auditing, Activision Blizzard will receive a $3 billion break-up fee.

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