Microsoft Corp announced the largest gaming deal acquiring the ‘Candy Crush’ and ‘Call of Duty’ maker Activision Blizzard with a $68 billion deal. The American tech giant announced the metaverse investment news on Tuesday.
Activision witnessed a steep 38% rise in the share price at $65.39 soon before the news came out. Although Microsoft has higher stakes in the company, Bobby Kotick will continue to serve as CEO of Activision Blizzard. Under his leadership, the company will be reporting to Phil Spencer, Microsoft Gaming head.
While making the announcement, Satya Nadela, the CEO of Microsoft, spoke to the media. “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,” he stated.
The new deal has made Microsoft’s Xbox the third largest gaming company globally. According to industry experts, the newly owned Activision gaming library will help Xbox have an upper position in the competitive market. Games such as “Call of Duty” and “Overwatch” can compete against the exclusive series of Sony’s Playstation.
The gaming industry has seen a sharp rise in demand for video games since the pandemic led consumers to at-home entertainment.
The new deal is expected to bring Microsoft’s gaming and metaverse space into the spotlight. “This acquisition will accelerate the growth in Microsoft’s gaming business across mobile, PC, console and cloud and will provide building blocks for the metaverse,” the company stated in the announcement.
2022 is seeing an eventful start with some crucial gaming deals occurring in the industry. Take-two Interactive Software Inc recently declared its interest in acquiring “FarmVille” maker Zynga. Reportedly, the company will make an $11 billion deal with Zynga to add to one of the biggest deals in the gaming industry.
Although Microsoft’s new deal is considered one of the most important acquisition deals in the industry, Activision has been in the news for different reasons. The company faced several lawsuits over allegations, including harassment and gender discrimination. It has also impacted the sales of the company’s most popular games. Industry experts suggest that with the company’s controversies, the new deal may come at a cost for Microsoft.