Microsoft Corp. will buy video game giant Activision Blizzard. The company founded by Bill Gates has announced that it will pay $ 95 per share for an all-cash transaction valued at $ 68.7 billion. Once the transaction is closed, Microsoft will become the third largest video game company in the world by revenue, behind Tencent and Sony. This is the largest acquisition in Microsoft’s history.
Activision Blizzard is the author of famous video game series such as Warcraft, Diablo, Call of Duty and Candy Crush. In the premarket, Microsoft’s stock loses 1.20%, Activision’s stock gains over 37%.
“Video games are the most dynamic and exciting category of entertainment on all platforms today and will play a key role in the development of metaverse platforms,” said Satya Nadella, CEO of Microsoft, in a statement.
Activision games like “Call of Duty” and “Overwatch” will give Microsoft’s Xbox gaming platform an edge over Sony’s Playstation, which has enjoyed a steadier stream of exclusive games for years.
Bobby Kotick will continue to serve as CEO of Activision Blizzard.