The purchase price is more than five times what Amazon spent on game streaming site Twitch. It's roughly triple the $2 billion Facebook paid for Oculus last March. It blows past the $2.5 billion Microsoft paid for "Minecraft" creator Mojang in 2014. And it's just under $2 billion more than Disney paid for Lucasfilm and the "Star Wars" franchise in 2012.
That's a lot of money to get into the free-to-play world. But it gives Activision an immediate and significant presence in the mobile gaming industry, an area where it has historically lacked scale.
"They're getting a leadership position in the fast-growing mobile gaming space," said Eric Handler, senior equity analyst for MKM Partners. "They are paying a very reasonable acquisition multiple — half of what they're trading. They have found a tax-efficient way to use their offshore cash. And they get a business that they couldn't replicate soon organically."