Microsoft Corp. has announced its acquisition of Activision Blizzard Inc. for $68.7 billion, in an all-cash transaction valued at $95.00 per share, including Activision's net cash. This acquisition positions Microsoft as the third-largest gaming company globally by revenue, trailing only Tencent and Sony. The acquisition includes prominent gaming franchises such as "Warcraft," "Diablo," "Overwatch," "Call of Duty," and "Candy Crush," along with Activision Blizzard’s global eSports operations through Major League Gaming.

Bobby Kotick will remain CEO of Activision Blizzard, with the company maintaining its focus on strengthening its culture and accelerating growth. Once the deal is finalized, Activision Blizzard will report to Phil Spencer, CEO of Microsoft Gaming.

The acquisition is designed to bolster Microsoft's gaming presence across mobile, PC, console, and cloud platforms and is strategic for building the metaverse. Microsoft plans to integrate Activision Blizzard’s popular titles into its Game Pass service, which currently boasts over 25 million subscribers. The deal, expected to close in fiscal year 2023, is subject to regulatory review and approval by Activision Blizzard's shareholders.

Advising on the deal, Goldman Sachs & Co. LLC and Simpson Thacher & Bartlett LLP served as financial advisor and legal counsel to Microsoft, respectively. Osler acted as Canadian counsel to Microsoft. Activision Blizzard was advised by Allen & Company LLC and Skadden, Arps, Slate, Meagher & Flom LLP.