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Friday March 29th

Microsoft Announces Acquisition of Game Studio Activision Blizzard in Blockbuster Deal

<p>Microsoft is set to spend $68.7 billion in one of the largest technology acquisitions in history (Flickr/”<a href="https://www.flickr.com/photos/jeepersmedia/15966273430/in/photolist-qjTjQo-qjTkkG-qjSEJm-qzaaz9-qk2gtp-pErGVu-pEF2Sk-qjZEuF-ovee7S-pEF2Hc-rcjTrK-6EX2CH-qBgzEK-qBntWQ-qzaafw-pErGbU-qjSEow-pEF26k-pErGTA-qBnsMA-qjSDNy-pErGqm-qza9PG-qza9yw-pEF2Cc-NP38de-rcddSo-qBgyXx-pErGiY-rtFhW7-oxg6S4-NuepgN-ofLrLv-7Hi4KT-dGyrX-4tCp8M-f7sz-68rzD-L9aqg-5D68f7-L8VDW-L8VNC-9mtDtV-9mwJgj-4rajfL-2jyKxe4-85V8X6-b7wBV-y2SQX-qjTjuo" target="">Microsoft</a>” by Mike Mozart, December 30, 2014).<br/><br/></p>

Microsoft is set to spend $68.7 billion in one of the largest technology acquisitions in history (Flickr/”Microsoft” by Mike Mozart, December 30, 2014).

By Matthew Kaufman

Staff Writer

Microsoft announced on Jan. 18 that it had agreed to purchase controversial video game studio Activision Blizzard for $68.7 billion in one of the largest technology acquisitions in history. The deal was first reported by the Wall Street Journal and then officially announced by Microsoft.

Activision Blizzard, known for producing game series such as “Call of Duty,” “Overwatch” and “Candy Crush,” has been battling controversy since California sued the company in July 2021 for failing to address a culture of sexual harassment, according to the New York Times. California’s Department of Fair Employment and Housing, the agency that filed the lawsuit, wrote that Activison’s workplace is “a breeding ground for harassment and discrimination against women.”

Bobby Kotick, the 30-year CEO of Activision Blizzard, is expected to continue to serve in his role until the merger is completed, at which point the company will report to Phil Spencer, CEO of Microsoft Gaming. Since the California lawsuit, calls for Kotick to resign have only grown, as the WSJ reported in November that Kotick was aware of the frequent sexual harrasment complaints within the company and often did not take action.

Spencer told the Washington Post that Microsoft, which produces the Xbox game console, is committed to fostering a positive culture within Activision, saying “We spent time with the Activision team looking at the incidents, looking at employee polls and then had a good discussion with them about their plan, both the progress they’ve been making and what their plan was.”

The acquisition is set to bolster Microsoft’s Game Pass streaming service by greatly expanding the number of franchises owned by the company. It will also allow Microsoft to expand into mobile gaming, where it currently has little reach, according to the Times.

“We’re investing deeply in world-class content, community and the cloud to usher in a new era of gaming that puts players and creators first and makes gaming safe, inclusive and accessible to all,” said Microsoft CEO Satya Nadella.

Many gamers are concerned that Microsoft could choose to not publish Activision titles on competing platforms, such as Sony’s PlayStation, according to the AP. Bloomberg reported that “Call of Duty” games will be released on PlayStation for at least the next three years.

It still remains to be seen whether governmental regulators will approve the acquisition, as turning previously multi-platform games into Xbox exclusives could be viewed as anti-competitive. According to the Times, Microsoft’s announcement came on the same day that the FTC announced that it would revise the approval process for mergers and acquisitions to be better applicable to the modern, tech-dominated landscape.

Diana Moss, president of the American Antitrust Institute, told the AP that she thinks the deal “should get a hard look, and it probably will get a hard look.”

Spencer told the Post that what excites him most about the deal is the prospect of reviving previously dormant Activision franchises. “We’re hoping that we’ll be able to work with them when the deal closes to make sure we have resources to work on franchises that I love from my childhood, and that the teams really want to get,” Spencer said. “I’m looking forward to these conversations. I really think it’s about adding resources and increasing capability.”

Microsoft said the acquisition would be finalized in fiscal year 2023, which begins this July.




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