SUBSCRIBE NOW Just 99¢ for your first month

ADVERTISEMENT

ADVERTISEMENT

Microsoft to buy 'Call of Duty' maker Activision Blizzard for $68.7 billion

Activision's library of games such as "Call of Duty" and "Overwatch" gives Microsoft's Xbox gaming platform an edge over Sony's Playstation.

Illustration of Microsoft and Activision Blizzard logos
Microsoft logo is seen on a smartphone placed on displayed Activision Blizzard logo in this illustration taken January 18, 2022.
REUTERS/Dado Ruvic/Illustration
We are part of The Trust Project.

Microsoft Corp said on Tuesday it was acquiring "Call of Duty" videogame maker Activision Blizzard for $68.7 billion in cash, the biggest deal in the sector that would help the Xbox maker become the third-largest gaming company by revenue.

Microsoft's offer of $95 per share is at a premium of 45% to Activision's Friday close. Shares of Activision were trading at $89.55 in trading before the bell.

"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," Microsoft Chief Executive Officer Satya Nadella said in a statement .

Microsoft has been making big investments in gaming, scooping up "Minecraft" maker Mojang Studios and Zenimax in multi-billion dollar deals in recent years.

Activision's library of games such as "Call of Duty" and "Overwatch" gives Microsoft's Xbox gaming platform an edge over Sony's Playstation, which has for years enjoyed a more steady stream of exclusive games.

ADVERTISEMENT

Shares of the "Candy Crush" maker have slumped over 37% since hitting their record high last year, largely hurt by allegations of sexual harassment and other misconduct at the videogame company.

The company is still addressing those allegations and said on Monday it had fired or pushed out more than three dozen employees and disciplined another 40 since July.

Bobby Kotick will continue to serve as CEO of Activision Blizzard.

The sector is consolidating with larger firms buying up smaller players in recent years.

Last week, "Grand Theft Auto" video game maker Take-Two Interactive said it would buy Zynga for $11.04 billion in a cash-and-stock deal that will add popular mobile titles such as "FarmVille" under its umbrella as demand surges for on-the-go gaming.

Related Topics: MICROSOFT
What to read next
The documentary "Bring Her Home" helps bring awareness to the epidemic of Missing and Murdered Indigenous Women. Leya Hale hosted a screening of her documentary at Pioneer Public TV in Granite Falls in early May.
Conservationists have spent years trying to stave off a national decline in hunting and fishing, but the 2020 pandemic appears to have righted a sinking ship.
A North Dakota potato breeder brings in a speaker from Wyoming who has trained a dog to detect potato virus diseases using their nose.
The North Dakota Soybean Processors plant at Casselton and the Green Bison plant at Spiritwood are signs of the growing demand for renewable fuel as well as feed for the livestock industry.