- The acquisition will make Microsoft the third largest gaming company by revenue in the world
- Microsoft will include many Activision Blizzard titles to its Xbox Game Pass
- The deal comes after many sexual scandals that plagued Activision Blizzard throughout 2022
Following many months of troubles, featuring sexual misconduct scandals, Activision Blizzard is being sold to Microsoft for a grand sum of $68.7 billion.
Microsoft Acquires Activision Blizzard
Activision Blizzard, one of the most well-known game studios, popular for series like Call of Duty, Starcraft, and Warcraft will soon be purchased by Microsoft. The company will be sold for a whopping $68.7 billion, making it the largest deal in the sector. When Microsoft acquires Blizzard, it will make the former the third-largest gaming company by revenue, behind Tencent and Sony.
After the deal, Microsoft will add many of the game studio’s titles to its Xbox Game Pass. Titles like Overwatch, Diablo, World of Warcraft, and Candy Crush will be published by the tech conglomerate. Microsoft chairman and CEO Satya Nadella said in an official statement that gaming is the fastest-growing type of entertainment. “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,” she added.
With over 25 million subscribers, the Xbox Game Pass will continue to rise in popularity as Microsoft acquires Activision Blizzard. “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,” said Phil Spencer, CEO of Gaming in Microsoft.
Blizzard’s Recent Troubles May Have Facilitated It Being Sold
Activision Blizzard has had a turbulent 2021. Many current and former employees have come forward reporting with claims that the company bred a toxic and sexist environment, with many female employees complaining of being sexually harassed at the workplace. Last summer, the California Department of Fair Employment and Housing (DFEH) sued Activision Blizzard for promoting a culture of “constant sexual harassment.”
This was just one of many similar cases, with accusations being launched at even the highest posts in the company. Even Activision Blizzard’s CEO Bobby Kotick was not spared, as a couple of months ago, thousands signed a petition demanding his removal from his position. It seems, that Kotick will continue to serve as CEO at least for now. However, this might not be the case after the deal is concluded, as Phil Spencer said that Activision Blizzard will report directly to him. Allegedly, Kotick hid information about punished employees, so that also might play a role in Microsoft’s decision.
“As a company, Microsoft is committed to our journey for inclusion in every aspect of gaming, among both employees and players,” Spenser said. “We hold all teams, and all leaders, to this commitment. We’re looking forward to extending our culture of proactive inclusion to the great teams across Activision Blizzard.”
At a premium price of $95 per share, Microsoft’s offer is one of the most lucrative ways to “save” Activision Blizzard. After the acquisition, Microsoft will surely boost its Xbox Game Pass and reaffirm its position as one of the biggest gaming companies worldwide.