Microsoft is aiming to put itself into the upper echelon of video games with its $68.7 billion deal to acquire Activision Blizzard, the gaming giant behind such franchises as Warcraft Diablo, Overwatch, Call of Duty and Candy Crush.
The agreement, announced Tuesday morning, would be the largest acquisition in the Redmond company’s history, eclipsing its $26 billion deal for LinkedIn in 2016. Added to its existing Windows PC and Xbox gaming businesses, Microsoft says the deal will make it the third-largest gaming company by revenue, behind Tencent and Sony.
Activision Blizzard, based in Santa Monica, Calif., will bring Microsoft some of the most iconic franchises in modern gaming, 10,000 employees, and a recent spate of revelations of sexual harassment and other workplace misconduct.
Bobby Kotick, Activision Blizzard CEO, will continue to serve in that role, Microsoft said. After the deal closes, Activision Blizzard will report to Phil Spencer, who will have the new title of CEO of Microsoft Gaming.
Microsoft says it expects the deal to close in its 2023 fiscal year, which begins in July of this calendar year.
“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 Microsoft CEO Satya Nadella in a statement announcing the deal. “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.”
Developing story, more to come.