Microsoft on Tuesday announced it would acquire Activision Blizzard in a blockbuster deal valued at nearly $70 billion. It’s one of the biggest acquisitions in the tech industry in recent years, one that will boost Microsoft’s position in the growing gaming industry but could be complicated by recent concerns about Activision’s toxic culture.
The cash transaction is valued at $68.7 billion and Microsoft says it will make the company the third largest gaming company by revenue behind Tencent and Sony.
We believe that creative success and autonomy come with treating everyone with dignity and respect. We commit every team and every leader to this commitment,” Microsoft Gaming CEO Phil Spencer said in an official statement on Tuesday. “We look forward to extending our culture of proactive involvement to the amazing teams at Activision Blizzard.”
The deal is pending regulatory review and Activision Blizzard shareholder approval, with the deal set to close in 2023.The companies will continue to operate independently until the transaction is finalized, after which Activision Blizzard will report to Spencer. Activision Blizzard’s stock shot up more than 30% ahead of the market open Tuesday morning; Microsoft shares fell around 1.5%.
Gaming has become a major point of focus for Microsoft in recent years, especially as the pandemic caused more people to stay at home and use gaming systems. In January 2021, Microsoft’s gaming revenue surpassed $5 billion for the first time due to high demand for the Xbox Series X and Series S consoles.
The acquisition would boost Microsoft’s gaming business with the addition of Activision Blizzard games and the nearly 400 million monthly active players that come with them. Microsoft will also acquire Activision’s global game studios and its almost 10,000 employees, according to the company.
