In its largest acquisition to date, Microsoft will pay nearly billion for Activision Blizzard, the gaming behemoth behind Call of Duty.

Simone Del Rosario Business Correspondent

Microsoft to buy gaming’s Activision Blizzard in all-cash $68.7 billion deal

Jan 18, 2022

Simone Del Rosario Business Correspondent

By Simone Del Rosario (Business Correspondent), Emma Stoltzfus (Video Editor)

Microsoft announced Tuesday it plans to pay a blockbuster $68.7 billion to acquire Activision Blizzard, the gaming behemoth behind Call of Duty and Candy Crush. The move is Microsoft’s largest acquisition to date, toppling the $26.2 billion it paid for LinkedIn in 2016. It comes as the Xbox owner looks to further cement its presence in the gaming sphere and compete with Meta in the metaverse.

“This acquisition will accelerate the growth in Microsoft’s gaming business across mobile, PC, console and cloud and will provide building blocks for the metaverse,” Microsoft said in a press release announcing the deal.

Activision Blizzard’s stock (ATVI) was up nearly 30% on the move, while Microsoft’s (MSFT) fell less than 1%.

Activision has been muddied in controversy for months over its workplace culture, including accusations of sexual misconduct and harassment at the executive level. The company announced Monday it has fired or pushed out dozens of employees in the last six months over the reports.

Despite calls to also push out the CEO, Bobby Kotick, the Microsoft deal would have him stay on as CEO during the transition. Once the deal closes, Microsoft said Activision Blizzard business will report to Phil Spencer, CEO of Microsoft Gaming.

The deal between Microsoft and Activision Blizzard is the second major gaming acquisition announcement this month. On Jan. 10, Take-Two Interactive announced plans to acquire FarmVille-creator Zynga for $12.7 billion.

SIMONE DEL ROSARIO: TALK ABOUT A BLOCKBUSTER DEAL. MICROSOFT IS BUYING UP VIDEO GAME GIANT ACTIVISION BLIZZARD IN AN ALL-CASH, 68.7 BILLION DOLLAR DEAL.

YOU KNOW ACTIVISION FOR MAKING GAMES FROM CALL OF DUTY TO CANDY CRUSH. IT’S MICROSOFT’S LARGEST ACQUISITION TO DATE AND WOULD FURTHER CEMENT THE COMPANY IN THE GAMING-SPHERE. IT’S ALSO A MOVE TO GET COMPETITIVE IN THE METAVERSE.

ACTIVISION STOCK SOARED 30% ON THE NEWS – WHILE MICROSOFT’S FELL LESS THAN 1%.

ACTIVISION’S BEEN MUDDIED IN CONTROVERSY FOR MONTHS OVER ITS WORKPLACE CULTURE, INCLUDING ACCUSATIONS OF SEXUAL MISCONDUCT AND HARASSMENT AT THE HIGHEST RANKS. THE COMPANY SAYS IT HAS FIRED OR PUSHED OUT DOZENS OF EMPLOYEES THE LAST SIX MONTHS. BUT DESPITE CALLS TO ALSO PUSH OUT ITS CEO, BOBBY KOTICK, THE MICROSOFT DEAL WOULD HAVE HIM STAY ON AS CEO DURING THE TRANSITION.

I’M SIMONE DEL ROSARIO. FROM NEW YORK, IT’S JUST BUSINESS.