Microsoft is acquiring rival Activision Blizzard in a deal that will fundamentally shake-up the video game sector.
The deal was made for a stunning $68.7 billion all-cash transaction, the largest in Microsoft’s history and the biggest ever takeover deal in the gaming and tech sectors. The deal automatically pushes Microsoft to third spot in global video game companies by revenue – behind only China’s Tencent and Japan’s Sony.
Activision Blizzard’s various franchises include the likes “Call of Duty,” “Candy Crush,” “Diablo,” “Overwatch,” “Starcraft” and “Warcraft” along with massive eSports ventures like Major League Gaming. Once joined, Microsoft will be running thirty internal game development studios – with rapid growth in the mobile sector a major draw of the new deal.
Activision Blizzard has also been making headlines lately over a string of sexual misconduct and discrimination allegations involving senior executives. CEO Bobby Kotick will continue in his current role, but will now report to Microsoft Gaming CEO Phil Spencer.
The deal follows on from Microsoft’s high-profile acquisition of Bethesda Softworks’ parent company ZeniMax Media in late 2020 for a comparatively small $7.5 billion, along with Take-Two Interactive’s much more recent acquisition of mobile gamer Zynga for $12.7 billion.
A full statement from Activision is now up at Activision.com. The announcement comes as the U.S. Federal Trade Commission and the Department of Justice have launched plans to update and modernize merger enforcement guidelines – meaning potential closer government scrutiny of major tech and media transactions.
Source: The Guardian
