Microsoft is making history after announcing on Tuesday that it will be acquiring ‘Call of Duty’ maker Activision Blizzard for $68.7 billion in the biggest gaming industry deal. The deal will be Microsoft’s biggest-ever and is set to be the largest all-cash acquisition on record.
The all-cash $68.7 billion deal will turn Microsoft, maker of the Xbox gaming system, into one of the world’s largest video game companies.
The deal will see the Xbox maker become the world’s third-biggest gaming company by revenue behind China’s Tencent and Japan’s Sony, maker of PlayStation games consoles.
Announcing the acquisition, Microsoft Chief Executive Satya Nadella was quoted as saying, “Gaming is the most dynamic and exciting category in entertainment across all platforms today and will play a key role in the development of metaverse platforms.”
Activision is known for popular games such as Call of Duty and Tony Hawk’s Pro Skater. Started in 1979 by former Atari Inc employees, Activision has created or acquired many of the most popular video games, from Pitfall in the 1980s to Guitar Hero and the World of Warcraft franchise.
