Microsoft Goes Shopping, Will Be No. 3 Gaming Company

Microsoft is buying the gaming company Activision Blizzard for $68.7 billion, gaining access to blockbuster games like Call of Duty and Candy Crush. The all-cash deal will let Microsoft, maker of the Xbox gaming system, accelerate mobile gaming and provide building blocks for the metaverse, or a virtual environment, per the AP. The deal would make Microsoft the world’s third-largest gaming company by revenue, behind China’s Tencent Holdings and Japan’s Sony Group, per the Wall Street Journal. The announcement Tuesday arrives with Activision still in turmoil over allegations of misconduct and unequal pay.

Activision disclosed last year it was being investigated by the Securities and Exchange Commission over complaints of workplace discrimination. Activision CEO Bobby Kotick will retain his role, and he and his team will maintain their focus on driving efforts to further strengthen the company’s culture and accelerate business growth. Activision is based in Santa Monica, Calif. The deal Tuesday follows Microsoft's $7.5 billion acquisition last year of ZeniMax Media, the parent company of video game publisher Bethesda Softworks, which is behind popular video games The Elder Scrolls, Doom, and Fallout. Microsoft said in both cases that the deals will help beef up its Xbox Game Pass subscription service.

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