THE EFFECTIVENESS OF MEGA-DEALS IN THE DIGITAL ERA: ASSET MANAGEMENT AND VALUE CREATION IN THE MICROSOFT–ACTIVISION BLIZZARD CASE

Abstract

The article examines the economic efficiency of a digital transaction in the entertainment industry, namely Microsoft’s acquisition of Activision Blizzard. The relevance of the study is determined by the need to analyze the performance of this transaction in the context of digital transformation, with a focus on the evaluation of intangible assets and related ecosystem effects. The purpose of the article is to develop a comprehensive approach to assessing the economic efficiency of mega-deals in the digital economy (based on the Microsoft–Activision Blizzard case), which would allow the integration of additional drivers of development and constraints affecting the value creation of intangible assets into traditional financial analysis in the post-integration period. The study analyzes approaches to evaluating the effectiveness of the merger and acquisition transaction between Microsoft and Activision Blizzard, including the prerequisites, motives, and regulatory aspects of the deal. The feasibility of the transaction is considered from three perspectives: business diversification through access to the mobile gaming market; strengthening positions in the cloud gaming segment through the expansion of the Game Pass ecosystem; and the development of long-term strategic potential through investments in the metaverse. The main components of the synergy effect of the deal are examined, including revenue, operational, financial, and managerial synergies. It is confirmed that the largest share of the synergy effect is generated by revenue synergies. In addition, the key risks and limitations of the deal related to integration costs and regulatory restrictions are identified. The conclusions confirm the achievement of operational and strategic synergies; however, the final assessment of the deal’s effectiveness largely depends on overcoming integration challenges and realizing the potential of the acquired assets under regulatory constraints.