Microsoft to acquire gaming giant Activision Blizzard for $68.7 billion – Everett Post

Everett

(NEW YORK) – Microsoft Corp. announced on Tuesday plans to acquire gaming giant Activision Blizzard Inc., makers of wildly popular franchises like Call of Duty and Warcraft, for $68.7 billion.

The companies jointly announced Tuesday news of the all-cash deal in which tech giant Microsoft is buying the controversial gaming company for around $95 a share. When the transaction closes, Microsoft will become the world’s third-largest gaming company by revenue – behind only Tencent and Sony, Microsoft said in a statement on Tuesday.

The deal comes as the gaming industry has become one of the fastest growing sectors in the entertainment industry and Microsoft is looking to accelerate its mobile, PC, console and cloud games and prepare for mainstream adaptation of the metaverse.

“Gaming is the most dynamic and exciting entertainment category today across all platforms and will play a key role in the evolution of Metaverse platforms,” said Satya Nadella, Microsoft chairman and CEO, in a statement. “We’re investing heavily in best-in-class content, community and the cloud to usher in a new gaming era that puts players and developers first and makes gaming safe, inclusive and accessible to all.”

The announcement also comes as Activision Blizzard has been rocked by allegations of promoting a culture of sexual harassment and gender discrimination.

Bobby Kotick will continue as CEO of Activision Blizzard, and once the transaction closes, the Activision Blizzard business unit will report to Microsoft Gaming CEO Phil Spencer.

“For more than 30 years, our incredibly talented teams have created some of the most successful games,” Kotick said Tuesday. “The combination of Activision Blizzard’s world-class talent and exceptional franchises with Microsoft’s technology, distribution, access to talent, ambitious vision and shared commitment to gaming and inclusion will help ensure our continued success in an increasingly competitive industry.”

The transaction has been approved by the boards of directors of both Microsoft and Activision Blizzard, but remains subject to shareholder approval, the companies said. It is scheduled to be completed in fiscal year 2023.