Microsoft announced this Tuesday the acquisition for 68,700 million dollars of Activision Blizzard, one of the largest video game companies in the world and responsible for well-known titles such as “Warcraft”, “Call of Duty” or “Candy Crush”.
In a statement, the tech giant said the purchase would make it the third largest company in the video game sector behind Tencent and Sony. The transaction will be paid for in cash and is expected to be completed this year, once regulatory approval is received.
The acquisition will be the largest in Microsoft’s history, far exceeding the slightly more than 26,000 million dollars it paid in 2016 to take over LinkedIn. The movement supposes, among other things, an important commitment of the company for the development of the metaverse, just as other technology companies such as Facebook are doing.
“Video games are today the most dynamic and exciting entertainment category on all platforms and will play a key role in the development of the platforms of the metaverse”, explained in the note the president and CEO of Microsoft, Satya Nadella.
Activision sunk by accusations of harassment
In recent months, Activision’s shares had fallen on the stock market, especially after California authorities filed a lawsuit against them following accusations of sexual and workplace harassment by company executives and denounced a problematic work culture in the firm.
For now, the current CEO, Bobby Kotick, will remain at the helm while, according to Microsoft, which explained that once the merger is closed, the business of Activision Blizzard will be under the direction of the head of Microsoft Gaming, Phil Spencer.
Activision has some of the biggest franchises in the video game world such as “Halo”, “Warcraft”, “Diablo”, “Overwatch”, “Call of Duty” or popular mobile games such as “Candy Crush”, in which Microsoft sees a great growth opportunity.
What’s more, The purchase will give the technology company access to the 400 million people who play Activision Blizzard games every month, which will be added to its Game Pass subscription service.
Rachel Maga is a technology journalist currently working at Globe Live Media agency. She has been in the Technology Journalism field for over 5 years now. Her life’s biggest milestone is the inside tour of Tesla Industries, which was gifted to her by the legend Elon Musk himself.