Microsoft to Buy Activision Blizzard for $68.7bn

Daniel Attoe
Daniel Attoe

Updated · Feb 21, 2022

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Microsoft announced on Tuesday that it will buy video game giant, Activision Blizzard. 

Largest Gaming Buyout Ever

Big Tech company Microsoft says it will acquire game maker Activision Blizzard in an all-cash transaction. Worth $68.7bn, it will be Microsoft’s biggest buyout so far. 

It would also be the most substantial gaming deal ever and will boost its push for a dominant spot in the gaming industry. After completion, Microsoft will become the third-largest gaming company in terms of revenue, only behind Sony and Tencent. The deal will represent a major push for Xbox in its battle against Sony’s PlayStation.

Activision Blizzard owns some of the most popular game franchises, such as Call of Duty, Overwatch, and World of Warcraft. However, the company has suffered a series of recent troubles, including investigations into its handling of sexual misconduct. But embattled CEO, Bobby Kotick, will stay on in his position.

As part of its plans for the acquisition, Phil Spencer will now head a new division called Microsoft Gaming. Spencer was the former head of the Xbox division.

According to the new chief executive, Microsoft will publish many of Activision’s franchises. “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,” he said.

Only a year ago, Microsoft bought another popular gaming company, Bethesda, in a $7.5bn deal.

Gearing for the Metaverse

Microsoft’s CEO, Satya Nadella, thinks the deal is a step in the right direction as it looks towards the metaverse.

"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,” he said.

That said, Microsoft still lags behind in the area of affordable consumer VR headsets.

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Daniel Attoe

Daniel Attoe

Daniel is an Economics grad who fell in love with tech. His love for books and reading pushed him into picking up the pen - and keyboard. Also a data analyst, he's taking that leap into data science and machine learning. When not writing or studying, chances are that you'll catch him watching football or face-deep in an epic fantasy novel.

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