Microsoft to buy Activision Blizzard for $68.7 billion

techcrunch.com:

Gaming giant Activision Blizzard, under the gun from investors over sexual harassment controversies and ongoing executive turmoil, has pulled the escape cord: the company has agreed to be acquired by Microsoft in a $68.7 billion all-cash deal, inclusive of the company’s net cash.

Activision Blizzard CEO Bobby Kotick has been rumored to step down amid ongoing SEC investigations and sexual harassment scandals in his company, which employs nearly 10,000 people. The Wall Street Journal reported that Kotick knew for years about sexual misconduct allegations at his company, but he did not act. Yet with this acquisition, Microsoft says that Kotick will keep his job. As a whole, Activision Blizzard will report to Microsoft Gaming CEO Phil Spencer.

This deal will make Microsoft the third-largest gaming company in the world by revenue, per their own press release, falling behind Tencent and Sony. Activision Blizzard is home to mega-franchises like “World of Warcraft,” “Call of Duty” and “Candy Crush,” while Microsoft Gaming produces Xbox consoles. Microsoft says it will include Activision Blizzard games in its cloud gaming subscription Game Pass, which recently reached 25 million subscribers.

This acquisition is expected to close in 2023, though the boards of both Microsoft and Activision Blizzard have approved the transaction.

This story is developing…