Microsoft Acquires Activision Blizzard for $68.7 Billion in Record Gaming Deal

Microsoft has announced the acquisition of video game giant Activision Blizzard for $68.7 billion, the largest deal in both Microsoft's history and the gaming industry. The purchase includes major franchises like Warcraft, Call of Duty, and Candy Crush Saga, and positions Microsoft to expand its Game Pass subscription service, which currently has 25 million subscribers. The acquisition also targets the mobile gaming market, as Activision Blizzard owns King, developer of Candy Crush Saga with 245 million monthly active users. Microsoft aims to strengthen its cloud gaming offerings and prepare for the metaverse, which Activision Blizzard CEO Bobby Kotick described as "the evolutionary vision of a collection of people playing." The deal comes amid difficulties for Activision Blizzard, including a California lawsuit over gender discrimination and sexual harassment, a 28% drop in stock value, and reports that Kotick concealed misconduct allegations. The acquisition is expected to close in the first half of 2023 but may face scrutiny from the US Federal Trade Commission (FTC), which alongside the Department of Justice is discussing new guidelines for tech mergers. Microsoft will remain behind Sony and Tencent in the gaming market.