Microsoft (NASDAQ:MSFT) announced Tuesday it will buy video game giant Activision Blizzard (NASDAQ:ATVI) in a $68.7-billion deal.
Activision, which is known for popular games such as "Call of Duty" and "Tony Hawk’s Pro Skater," has been mired in controversy for the last several months following reports of sexual misconduct and harassment among the company’s executives. On Monday, Activision said it fired dozens of executives after an investigation.
Activision confirmed the exit of 37 employees and disciplinary action against 44 others since July in a bid to address allegations of sexual harassment and other misconduct, the Wall Street Journal reports. The move follows sustained pressure from shareholders, staff, and business partners.
Microsoft will pay $95.00 per Activision share to create the world's third-biggest gaming company measured by revenue, behind Tencent and Sony. The deal includes franchises "Warcraft," "Diablo," "Overwatch," "Call of Duty" and "Candy Crush," in addition to global eSports activities through Major League Gaming, the companies said in a joint statement. The deal is expected to close in fiscal 2023.
Activision will continue to be led by CEO Bobby Kotick and his management team, who have come under criticism for their handling of misconduct by some of the company's employees.
"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 Microsoft CEO Satya Nadella.
MSFT shares sagged $3.33, or 1.1%, to $306.85, while those for Activision added $19.07, or 29%, to $84.48.
