Microsoft is buying Activision
Microsoft agreed to buy Activision in their largest ever deal. The all cash deal is for 75 billion dollars, which comes in just under 69 million dollars after accounting for Activisions net cash.
Activisions shares had dropped after regulators filed complaints due to harassment and gender misconduct allegations.
This is by far Microsoft’s most expensive acquisition, with second place linkedin costing 26 billion dollars.
Microsoft said the transaction would make it the world’s third-largest gaming company by revenue, behind China’s Tencent Holdings Ltd. and Japan’s Sony Group Corp.
Microsoft has been active in buying gaming companies recently after a change in focus when other major acquisitions didn’t work out, with attempts to buy tiktok, discord and pinterest notably falling through.
Microsoft’s gaming strategy is focused on growing its subscription business, Game Pass, which it aims to be the Netflix of gaming. Which Microsoft announced now has 25 million subscribers.
Activision shares went up 26% after the announcement.