Microsoft has announced that it will acquire video game publisher Activision Blizzard for an eye-watering $68 billion.
The deal will make the software giant "the world’s third-largest gaming company by revenue, behind Tencent and Sony."
The acquisition will include iconic video game franchises like Warcraft, Diablo, Overwatch, Call of Duty, and Candy Crush.
“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,” Microsoft Chief Executive Officer (CEO) Satya Nadella said.
The deal is expected to be closed by 2023.
Massive Boost to Xbox Game Pass
The acquired franchises will now be added to Xbox Game Pass, Microsoft's popular video game subscription service, which already has over 25 million subscribers.
Activision Blizzard’s nearly 400 million monthly active players in 190 countries and three billion dollar franchises will give an enormous boost to the service.
The acquisition, according to Microsoft, will push the growth of its gaming business "across mobile, PC, console and cloud and will provide building blocks for the metaverse."
Microsoft Quiet on Sexual Harassment Claims
Microsoft's announcement comes against the backdrop of sexual harassment allegations levelled against Activision Blizzard by several of its employees.
In July last year, a huge lawsuit was filed against the company by California’s Department of Fair Employment and Housing for allegedly promoting "a culture of constant sexual harassment."
Microsoft hasn't addressed these allegations yet.
Activision Blizzard's CEO Bobby Kotick is planning to resign from his position, according to Reuters, and will walk away with a $390 million payout. Earlier, Microsoft had said that Kotick would hold on to his position.
Last year, Microsoft had acquired Bethesda Studios for $7.5 billion.
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