Microsoft has announced plans to acquire Activision Blizzard, the third-largest gaming company by revenue, for $68.7 billion in an all-cash transaction. The acquisition will include iconic franchises such as “Call of Duty” and “Candy Crush,” as well as global eSports activities through Major League Gaming. The acquisition also bolsters Microsoft’s Game Pass portfolio, which has reached a new milestone of over 25 million subscribers.
The move is expected to help Microsoft compete with other gaming companies like Tencent and Sony, as the company plans to launch Activision Blizzard games into Game Pass. Microsoft’s CEO, Satya Nadella, stated that gaming is the most dynamic and exciting category in entertainment across all platforms, and that the company is 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.
Activision Blizzard CEO Bobby Kotick will continue to serve as CEO of the company, and he and his team will maintain their focus on driving efforts to further strengthen the company’s culture and accelerate business growth. The acquisition is subject to customary closing conditions and completion of regulatory review and Activision Blizzard’s shareholder approval, and is expected to close in fiscal year 2023.
Microsoft’s acquisition of Activision Blizzard is seen as a significant move in the gaming industry, with the potential to create one of the most compelling and diverse lineups of gaming content available.