Microsoft to Acquire Activision Blizzard For $68.7 Billion

Microsoft has made a massive buy, acquiring video game giant Activision Blizzard in a $68.7 billion deal. The Verge reports that the company is acquiring the publisher of such games as Overwatch, Call of Duty, World of Warcraft, and Diablo in what is considered to be Microsoft’s biggest push into the gaming sphere to date.

Microsoft confirmed the news in an announcement, noting that the buy “will accelerate the growth in Microsoft’s gaming business across mobile, PC, console and cloud and will provide building blocks for the metaverse.”

The purchase comes at a time when Activision Blizzard is under fire for a multitude of sexual harassment and assault claims. The California Department of Fair Employment and Housing (DFEH) sued Activision Blizzard sued the company in July for promoting a culture of “constant sexual harassment” and employees have been open about demanding change. Activision Blizzard reached a settlement with the US Equal Employment Opportunity Commission in September for $18 million, and calls for CEO Bobby Kotick to resign have been prevalent.

While Kotick will be remaining with the company through the acquisition, which is subject to regulators and not expected to close until sometime next year, the New York Times notes that he is expected to step down after the deal is complete although it’s possible that he could move into an advisory role. Activision Blizzard will report to Microsoft CEO of Gaming Phil Spencer.

“As a company, Microsoft is committed to our journey for inclusion in every aspect of gaming, among both employees and players,” says Spencer. “We deeply value individual studio cultures. We also believe that creative success and autonomy go hand-in-hand with treating every person with dignity and respect. We hold all teams, and all leaders, to this commitment. We’re looking forward to extending our culture of proactive inclusion to the great teams across Activision Blizzard.”

For Microsoft, the deal means a big shot in the arm for its Game Pass subscription service which currently has 25 million subscribers. In the announcement, it was noted that “Upon close, we will offer as many Activision Blizzard games as we can within Xbox Game Pass and PC Game Pass, both new titles and games from Activision Blizzard’s incredible catalog.”

“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,” said Satya Nadella, chairman and CEO, Microsoft. “We’re investing deeply in world-class content, community and the cloud to usher in a new era of gaming that puts players and creators first and makes gaming safe, inclusive and accessible to all.”