Microsoft acquires Activision Blizzard for US$68.7 billion
Microsoft is now the third-largest gaming company in the world, thanks to its purchase of gaming juggernaut Activision Blizzard.
The purchase, announced today, is the largest acquisition in the history of the gaming industry. Microsoft purchased Activision Blizzard for US$68.7 billion in cash.
Microsoft’s acquisition of Activision Blizzard follows the purchase of two other large gaming companies, namely Zenimax Media (the parent company of Bethesda) in 2020 for $7.5 billion and Mojang (the studio behind Minecraft) in 2014 for $2.5 billion.
According to the Associated Press, Microsoft said the purchase of Activision Blizzard will flesh out its Xbox Game Pass subscription service and position the tech giant to compete in the “metaverse,” a label for the burgeoning connected virtual reality environment many other tech companies are pushing toward.
The deal must now face examination by regulators in the United States and European Union, but Microsoft believes the deal will be finalized sometime in 2023.
While Activision Blizzard’s corporate structure will change under its new owner, CEO Bobby Kotick will retain his role. Kotick came under fire last year after accusations of a toxic work culture surfaced, painting Activision Blizzard as a “breeding ground for harassment and discrimination against women,” according to the Associated Press. Microsoft has stated that it will work to reshape Activision Blizzard’s work culture.
Activision Blizzard is the company behind many popular games and franchises, including Call of Duty, Crash Bandicoot, Spyro the Dragon, Candy Crush, World of Warcraft (and the broader Warcraft franchise), Overwatch, and more. Microsoft will now own the rights to these franchises once the acquisition is finalized.
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