Microsoft Buys Troubled Activision Blizzard in Record $68.7 Billion Deal
Microsoft acquires Activision Blizzard for $68.7 billion in an all-cash deal, bringing major franchises under the Xbox umbrella. The purchase occurs as the gaming giant faces severe employee unrest and ongoing sexual harassment scandals.
Microsoft acquires Activision Blizzard in a massive $68.7 billion all-cash deal, adding iconic game franchises to its Xbox portfolio. The acquisition comes as Activision Blizzard faces intense scrutiny from investors and employees over widespread sexual harassment controversies and executive turmoil. Under the terms of the agreement, the gaming publisher reports directly to Microsoft Gaming CEO Phil Spencer.
Despite the severe workplace scandals, Activision Blizzard CEO Bobby Kotick remains in his position for now, though sources indicate he plans to step down once the deal officially closes in 2023. Kotick faces heavy criticism for his alleged inaction regarding sexual misconduct and rape allegations within the company. Spencer addresses these cultural issues by stating Microsoft intends to extend its culture of inclusion to the newly acquired teams.
The buyout does not immediately resolve internal unrest, as employees continue to protest both the ongoing misconduct scandals and recent layoffs of quality assurance contractors. Notable internal critics, such as senior test analyst Jessica Gonzalez, already resign in frustration over leadership's refusal to take accountability. Workers worry the acquisition ultimately rewards the executives who allowed the toxic workplace culture to persist.