Microsoft confirms Activision Blizzard takeover

Following a challenging period for the developer's leadership, Microsoft has surprised the gaming world with a planned $70 billion takeover of Activision Blizzard. By June 2023, Microsoft will have acquired Activision's enormous portfolio of video game development companies, bringing Call of Duty, Overwatch, and World of Warcraft under its banner. In an internal email, Activision Blizzard CEO Bobby Kotick informs staff that he wants to stay in his current position for the foreseeable future.

According to conflicting sources, Kotick will step down after the deal is completed, with a potential compensation of roughly $300 million if he is fired. This news comes after Activision Blizzard was slapped with various lawsuits following complaints about their workplace environment, which resulted in employee walkouts and a reduction in stock prices.

On January 17, Bloomberg reporter Jason Schreier published some details regarding the surprise deal, citing a Wall Street Journal report. According to Bloomberg, Blizzard is valued at $70 billion in this historic deal.

"According to the Wall Street Journal, Microsoft is buying Activision Blizzard, the troubled publisher behind Call of Duty and World of Warcraft, which has been in turmoil for the past year following many allegations of sexual misconduct and discrimination," he stated.

Microsoft confirms Activision Blizzard takeover

Microsoft confirmed the transaction and the company's goals shortly after. "Today, Microsoft Corp. announced plans to buy Activision Blizzard Inc., a leader in game creation and interactive entertainment content publisher," the business said on its official website.

"This acquisition will help Microsoft's game company grow across mobile, PC, console, and cloud platforms, as well as providing metaverse building blocks."

Satya Nadella, Chairman and CEO of the Microsoft Corporation, said this marks “a new era” in gaming to make it “safe, inclusive, and accessible to all”.

The statement from Microsoft continues: “When the transaction closes, Microsoft will become the world’s third-largest gaming company by revenue, behind Tencent and Sony. The planned acquisition includes iconic franchises from the Activision, Blizzard, and King studios like Warcraft, Diablo, Overwatch, Call of Duty, and Candy Crush, in addition to global esports activities through Major League Gaming. The company has studios around the world with nearly 10,000 employees.”

Since Microsoft purchased Bethesda in March 2021, Xbox Game Pass has benefited greatly from Bethesda's games.

“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,” said Nadella.

“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.”