Microsoft Agrees to Historic $68.7 Billion Activision Blizzard Acquisition
Microsoft announces its largest acquisition ever by purchasing gaming giant Activision Blizzard for $68.7 billion in an all-cash deal. The monumental move positions Microsoft to compete directly in building the metaverse.
Microsoft announces a massive $68.7 billion all-cash deal to acquire video game giant Activision Blizzard, marking the largest purchase in Microsoft's history. The agreement involves Microsoft paying $95 per share, causing Activision's stock to rise over 25% while Microsoft's shares dip slightly. This historic acquisition surpasses Microsoft's previous record-breaking purchase of LinkedIn.
The deal brings popular game franchises like Call of Duty under Microsoft's umbrella as the tech giant aggressively expands its gaming portfolio. Activision currently faces significant internal turmoil due to recent scandals involving sexual misconduct and harassment, leading to the firing of dozens of executives. Following the acquisition's closure, Activision will report directly to Microsoft's Xbox leader Phil Spencer, and CEO Bobby Kotick is expected to step down.
This strategic move serves as Microsoft's bold entry into the metaverse race, allowing it to compete directly with companies like Meta. While Microsoft expects to finalize the purchase in fiscal 2023, the deal faces potential hurdles from U.S. regulators who are increasingly scrutinizing large tech industry acquisitions. Despite these regulatory challenges, Microsoft sees gaming as the foundational building block for creating expansive virtual worlds.