Microsoft corporation is acquiring popular video game maker Activision Blizzard for $68.7 billion in cash. Activision Blizzard is known for some popular games including Call of Duty, World of Warcraft, World of Warcraft, and more. This deal will make Microsoft the third-largest gaming company by revenue.
This deal is also the largest acquisition of Microsoft.
Shares of Activision soared about 37% in pre-market trading and Microsoft shares fell more than 2% following the announcement.
After the acquisition, the company could add several Activision games to Xbox Game Pass. last year, it also acquired Bethesda (ZeniMax Media) for $7.5 billion and brought its games to Xbox Game Pass. Xbox Game Pass already has over 25 million subscribers and the company is trying to add as many games to it as possible.
“Gaming is the most dynamic and exciting category in entertainment across all platforms today and will play a key role in the development of metaverse platforms,” Microsoft Chief Executive Officer Satya Nadella said in a statement.
During the pandemic, the video games market grew and is still growing. Most games companies saw growth in terms of active gamers.
This deal will go through regulatory approval in several countries. So, it may take a long time. The acquisition is expected to close in the fiscal year 2023. Until this transaction closes, Activision Blizzard and Microsoft Gaming will continue to operate independently. Once Activision Blizzard becomes part of Microsoft, the Activision Blizzard team will report to Spencer as the CEO of Microsoft Gaming.
