Microsoft Inc said Tuesday that it will acquire game maker Call of Duty Activision Blizzard for $ 68.7 billion in cash, the biggest deal in the gaming industry, making the Xbox owner the third-largest game company by revenue, 30% after this announcement.
Microsoft offered $ 95 per share, a 45% premium over Activision’s close on Friday. Activision’s stock was trading at around $ 89.55 before official trading began. “Games are the most active and exciting category in entertainment across all platforms today and will play a key role in the development of Metaverse platforms,” said Satya Nadella, CEO of Microsoft, in a note.
The demand for video games increased during the Corona pandemic, with consumers during confinement and closures forced to play more fun games on their own. Activision’s game library, which includes Call of Duty and Overwatch, it also gives Xbox, Microsoft’s gaming platform, an edge over Sony’s PlayStation, which has been blessed with a torrent of exclusive games for years.
Bobby Kotik will continue to serve as CEO of Activision Blizzard in under the acquisition agreement. Rival game company Take-Two Interactive said last week that it will buy FarmVille producer Zynga for $ 11.04 billion. in cash and shares.
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