Technology company developing computer software and consumer electronics Microsoft Corp. (MSFT) will be purchasing video game maker Activision Blizzard Inc. (ATVI) in a deal worth $67.8 billion. This will go down as the largest ever acquisition deal in the video gaming industry.
This announcement was made by Microsoft which said the deal will be an all-cash one and it will be its largest ever acquisition deal and it will give its video gaming unit a significant boost especially this time when its industry peers in the market like Sony Entertainment (TYO: 6758) and Tencent Holding (HK: 0700) are making big moves.
“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 the chief executive officer of Microsoft, Satya Nadella.
This deal also will make Microsoft the third largest gaming company. An insider source has revealed that Microsoft will be paying a $3 billion break-fee if the deal fails to materialize. This expresses how Microsoft is confident of winning antitrust approval.