Microsoft to acquire Activision Blizzard in $68.7 billion deal

Microsoft has officially announced its plan to acquire gaming company, Activision Blizzard, for a fee of $68.7 billion. It is one of the most significant acquisitions in the tech industry in recent years, and it will strengthen Microsoft's position in the growing gaming industry.

“Upon close, we will offer as many Activision Blizzard games as we can within Xbox Game Pass and PC Game Pass, both new titles and games from Activision Blizzard’s incredible catalog,” says Microsoft’s CEO of gaming Phil Spencer.

“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,” says Microsoft CEO Satya Nadella.

Activision’s acquisition will be valued at $68.7 billion, significantly more than the $26 billion Microsoft spent to acquire LinkedIn in 2016. It is Microsoft's largest entry into gaming, and the company says that after the deal closes, it will be the "third-largest gaming company by revenue, behind Tencent and Sony."

Microsoft’s Activision Blizzard deal comes nearly a year after the company acquired Bethesda (ZeniMax Media) for $7.5 billion. Microsoft now expects the Activision Blizzard deal “to close in fiscal year 2023,” which means we might not see this deal approved for up to 18 months.