In a deal that will most assuredly shake the foundations of the gaming industry, Microsoft has closed in its viceroy grip, taking hold of the shamed and defamed publisher Activision Blizzard on Tuesday morning. Known for its massive hit franchises, from Call of Duty to World of Warcraft, ActiBlizzard will be acquired by Microsoft in an all-cash deal of $68.7 billion.
This now gives Microsoft one of the largest pulls in the industry, showcasing both strategy and might of the Xbox-owned conglomerate. It's now the most expensive buyout in video game business history and levies Microsoft the keys to an extensive list of potential Xbox exclusive titles.
Despite the whirlwind, this will undoubtedly cause, Activision Blizzard has long been mired in its own flurry of immense controversy. The most poignant of these concerns is the lawsuit filed against the company by the state of California, which posited ActiBlizzard's workplace culture as "a breeding ground for harassment and discrimination against women."
The SEC likewise got involved, and the swirling negativity has led many in the gaming industry to call out Activision's CEO, Bobby Kotick, as the foremost culprit. Still, after several months and various employee walkouts, Kotick has yet to step down from his position.
However, this new deal with Microsoft may well aim to amend these complaints. The terms of the deal will see Kotick reporting to Xbox boss Phil Spencer (for now). Activision Blizzard's own internal investigation has led to the firing of nearly 37 employees due to harassment and disgusting workplace behavior.
Akin to Take-Two Interactive's most recent purchase of mobile ad tech platform Zynga, ActiBliz's acquisition under Microsoft could point to the latter delving somewhat more into the mobile realm. Activision has a number of valued mobile-based experiences, the main among them being Call of Duty Mobile and Candy Crush.
This will likewise add to Microsoft's expansion of Xbox Game Pass, a subscription service that makes games more accessible and affordable. Activision Blizzard could well see a plentitude of its games on the service. It will only amplify its household necessity, as it accrued 18 million users by January of last year alone.
The announcement saw Microsoft's shares drop by a little over 2%, while Activision's skyrocketed to a healthy 37% amid pre-market trading Tuesday morning.
