Microsoft buys Activision Blizzard for $68.7 billion

Microsoft has purchased major third party publisher Activision in reported all-cash deal of $68.7 billion.

“Together with Activision Blizzard, we have an incredible opportunity to invest and innovate to create the best content, community and cloud for gamers,” Microsoft CEO Satya Nadella told investors on Tuesday.

Under the deal, Xbox will now own multiple major franchises including Call of Duty, Diablo, Warcraft, Overwatch, Crash Bandicoot, and Spyro, as well as mobile game developer King.

Activision has been facing a rocky couple of years thanks to multiple controversies. First with the stripping of Blitzchung of his winnings after the pro Hearthstone player denounced Chinese aggression in Hong Kong. More recently, they have been faced with a barrage of harassment suits, and claims of a toxic work environment. Games like Call of Duty Vanguard have also received a cool reception among fans.

While the merger will need to past several anti-trust checks before it’s allowed to pass, this move stands as a major coup against rival PlayStation. Activision is the oldest third party publisher in the Western games industry, with a back catalogue going as far back as the Atari 2600. They are also one of the largest in the business thanks to numerous popular franchises and aggressive post-purchase monetization. Should those games go Xbox and PC exclusive, it will put a major dent in Sony’s library. Questions still remain though as to how Microsoft will fix the scandal plagued company’s reputation.

Microsoft shares declined 1.6% on the announcement.

Source: CNET