Tech giant Microsoft will acquire video game publisher Activision Blizzard in a $68.7 billion deal to reshape the gaming landscape.
The deal, if completed, will bring together Microsoft, which owns the Xbox gaming platform, and Xbox Game Studios (which owns Bethesda Softworks and 343 Industries, among other game publishers) and Activision, owner of Call of Duty, Warcraft and Tony Hawk franchise, among other things.
Microsoft will become the world’s third-largest gaming company by revenue, behind Tencent and Sony, when and if the deal closes.
The deal comes as Activision Blizzard grapples with its own #MeToo calculation, prompting dueling investigations from the state of California and federal agencies. The company has been accused of pervasive sexual harassment and discrimination related to alcoholic parties, male employees allegedly joked about rape, a female employee died by suicide after nude photo-sharing colleagues and the so-called “Cosby Suite” worked by moderators have gained a reputation for unwanted sexual advances.
Those statements led to an unflattering rant from Kotick in October, with the moderator writing to employees:
“Over the past decade, as we have brought on new companies, grown our workforce and expanded our business, we believe we have the systems, policies and people in place to ensure that our company lives up to its reputation. Workplace. Obviously, in some extremely important respects, we failed to do so,” Kotick wrote in his memo. “The railings are not placed everywhere to ensure that our values are being maintained. In some cases, people often don’t feel comfortable reporting concerns or their concerns are not always addressed promptly or properly. Everyone was extremely disappointed and, for that, I’m really sorry. “
Microsoft said that Kotick will continue to serve as Activision CEO after the deal closes, adding that “he and his team will maintain their focus on advancing efforts to further strengthen culture of the company and accelerate business development”. However, Kotick and the Activision team will report to Phil Spencer, CEO of Microsoft Gaming.
The tech giant says that mobile gaming is a key part of the deal, with Microsoft not being a particularly competitive competitor in this space, in contrast to Activision, which owns the games. play like Candy Crush. Microsoft also said that if the deal ends, Activision games will be integrated into their Game Pass subscription service, giving a significant boost from Activision’s franchises. The Call of Duty The franchise, with its annual release cycle, would be a particularly compelling addition.
Satya Nadella, President and CEO of Microsoft, said: “Games are the most dynamic and exciting entertainment genre across all platforms today and will play a key role in its growth. of metaverse platforms”. “We are investing deeply in world-class content, community and cloud to usher in a new era of gaming that puts players and creators first and makes gaming safe, comprehensive and accessible to all.”
“For over 30 years, our incredibly talented teams have created some of the most successful games,” Kotick added in a statement. “The combination of Activision Blizzard’s world-class talent and unique franchise with technology, distribution, talent access, ambitious vision, and shared commitment to gaming and inclusion Microsoft will help ensure our continued success in an increasingly competitive industry.”
