Microsoft has announced its plans to acquire Activision Blizzard amid the ongoing controversy surrounding the publisher's workplace harassment lawsuit.
Confirmed by Microsoft itself, the company will soon be finalizing a deal that will see it take control of Activision Blizzard, the publisher best known for Call of Duty, World of Warcraft and Overwatch. The deal is valued at "$68.7 billion, inclusive of Activision Blizzard’s net cash," writes Microsoft, noting once the deal closes that Bobby Kotick, Activision Blizzard's current CEO, will retain his position at the head of the company. Kotick will now report to Phil Spencer, CEO of Microsoft Gaming. The acquisition will also see Microsoft gain ownership of King Digital Entertainment, a company largely known for the hyper-popular mobile game Candy Crush.
Microsoft also confirmed that it plans to integrate Activision Blizzard's catalog into Xbox Game Pass, its subscription service that grants users access to a large library of games for a monthly fee. None of the titles have yet been revealed but fans speculate that the publisher's most popular franchises, such as Call of Duty and Overwatch, will be available through the service. At the time of writing, the deal is expected to close in 2023 and has already been approved by the boards of directors of both Microsoft and Activision Blizzard.
The acquisition of Activision Blizzard comes in the wake of a high-profile lawsuit against the company due to accusations of sexual harassment and workplace inequalities. The California Department of Fair Employment confirmed that several employees came forward to report multiple counts of sexual misconduct amongst Activision Blizzard corporate elites. While the company did confirm that it would pay $18 million USD in a settlement, Activision Blizzard has gained a notorious reputation in the industry. Microsoft did not mention this controversy in its announcement post but did note that it will focus on "driving efforts to further strengthen the company’s culture and accelerate business growth."
This isn't the first major acquisition by Microsoft. The company has steadily been adding to its Xbox ecosystems by acquiring development studios small and large. Perhaps the most notable purchase before Activision Blizzard was Bethesda Softworks, the purveyors of iconic franchises such as The Elder Scrolls, Fallout, Doom and Wolfenstein. Announced in 2020, the deal was put to rest in 2021 and Bethesda's catalog of titles was swiftly added to Games Pass. If everything goes according to plan, the situation will likely be the same for Activision Blizzard.
Source: Microsoft