Microsoft Flexes Its Gaming Muscles

Microsoft agreed to buy Activision Blizzard – maker of Call of Duty, World of Warcraft, Candy Crush, and more – in an all-cash deal valuing the video game publisher at $68.7 billion. Microsoft plans to add many of Activision’s games to Xbox Game Pass once the deal closes.

• This is the software giant’s largest-ever acquisition by a wide margin, topping its 2016 purchase of LinkedIn by more than $40 billion.
• It’s also the largest acquisition in gaming history by far, breaking a record set last week when Take-Two Interactive agreed to buy mobile games giant Zynga for $12.7 billion.
• Earlier this week, the WSJ reported that Activision had fired or disciplined more than 80 employees since July as part of efforts to address sexual harassment and other misconduct allegations, including an ongoing lawsuit filed by California regulators and an open SEC investigation.

+The magic number: If finalized, the deal would make Microsoft the world's third-largest gaming company by revenue after Tencent and Sony.