Microsoft buys Activision Blizzard for $68.7B, Phil Spencer to be CEO

Microsoft Tuesday announced that Activision Blizzard was acquired by Microsoft. Activision Blizzard is the publisher of many of the best-known games (from World of WarcraftTo Duty callThe studio, which is also currently in the middle of multiple lawsuits relating to allegations of gender discrimination within its workplace, was sued. Activision Blizzard CEO Phil Spencer, Xbox’s boss, will be appointed after the deal is closed.

The Wall Street Journal reported that the deal was worth $68.7B.

In a blog post about the acquisition, Spencer further noted that Microsoft “will offer as many Activision Blizzard games as we can within Xbox Game Pass and PC Game Pass, both new titles and games from Activision Blizzard’s incredible catalog.”

As far as the discrimination lawsuits, Spencer’s blog post and the announcement post from Microsoft made no direct mention of the situation. However, Spencer’s post includes this paragraph about workplace culture: “As a company, Microsoft is committed to our journey for inclusion in every aspect of gaming, among both employees and players. We deeply value individual studio cultures. Creative success and autonomy are linked to treating everyone with respect and dignity. We hold all teams, and all leaders, to this commitment.”

In November 2021, after more than 1,000 Activision Blizzard employees signed a letter calling for the company’s CEO Bobby Kotick to resign, Phil Spencer said in an internal email obtained by Bloomberg that Microsoft was “evaluating all aspects of our relationship with Activision Blizzard and making ongoing proactive adjustments.” Apparently, that evaluation included an appraisal of Microsoft’s pocketbook, and the possibility that it could afford to purchase Activision Blizzard outright.

The deal will further extend Microsoft’s position in the games industry as a whole. Microsoft’s announcement outlines the huge scope of the purchase:

With Activision Blizzard’s nearly 400 million monthly active players in 190 countries and three billion-dollar franchises, this acquisition will make Game Pass one of the most compelling and diverse lineups of gaming content in the industry. Microsoft will now have thirty internal gaming studios and additional publishing/esports production capabilities upon closing.

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