Activision Blizzard, a game firm, has been acquired by Microsoft for $95 per share. The all-cash takeover transaction is now worth a record $68.7 billion. According to the firm, the combined entity would be the third-largest game company in terms of revenue.
If authorities and Activision Blizzard shareholders approve the deal, it is projected to close sometime in Microsoft’s fiscal 2023 (by June 2023). The deal has previously been approved by the boards of directors of both firms. This puts Microsoft in direct rivalry with industry heavyweights such as Tencent and Sony.
As part of the agreement, the Redmond-based behemoth intends to add Activision Blizzard games to Game Pass. Popular game franchises such as Call of Duty, World of Warcraft, and Candy Crush will be taken under the company’s fold once the transaction is completed.
Bobby Kotick will continue to lead Activision Blizzard and will report to Microsoft Gaming President Phil Spencer. According to the Wall Street Journal, Kotick will leave soon after the purchase is completed.
In a business statement regarding the agreement, Kotick portrayed Microsoft’s move as an opportunity to “further develop” Activision Blizzard’s working culture and “create a new benchmark” for inclusiveness. He went on to say that once the union was in place, there would be “minimal modifications” to personnel counts.