By John McPhaul, The Chicago Times
January 18, 2022
REDMOND, WA — Microsoft announced the purchase of game maker Activision Blizzard for nearly $70 Billion.
According to a press release, the all cash purchase will elevate Microsoft, famous for the Xbox gaming system, into one of the largest videogame companies in the world. The purchase will have to be approved by U.S. and European regulators.
Activision Blizzard Inc’s shares popped up 27% in early trading Tuesday, wiping out a six-month downturn since California’s discrimination lawsuit was filed.
Microsoft recently purchased ZeniMax Media, the parent company of Bethesda Softworks, for $7.5 billion and believes the purchase of Activision Blizzard will strengthen its Xbox Game Pass game subscription service and entry into virtual gaming.
Microsoft expects the deal to be completed in July of 2023. Although Activision will retain CEO Bobby Kotick, it is expected that the Activision unit will report to Phil Spencer, Microsoft’s CEO of Microsoft Gaming.