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Microsoft Plans to Activision Blizzard for $68.7 Billion

Microsoft has announced plans to acquire Activision Blizzard for $68.7 billion. This new acquisition deal would make the combined entity the “third-largest” game company by revenue and put titles like Call of Duty, World of Warcraft, and Candy Crush under the company’s wing.Microsoft plans to add Activision Blizzard games to Game Pass as part of the deal. Mobile gaming is also a significant factor in the acquisition. The purchase promises to bring franchises like Halo and Warcraft to more devices.

The buyout is expected to close sometime in Microsoft fiscal 2023 if regulators and Activision Blizzard shareholders greenlight the move. The boards of directors for both companies have already approved the deal.While news of the acquisition comes as Activision Blizzard is still embroiled in a misconduct scandal, you shouldn’t expect significant leadership changes.

Bobby Kotick will remain Activision Blizzard’s CEO despite calls for his resignation, and will now report to Microsoft Gaming chief Phil Spencer.The Wall Street Journal reports that Kotick will leave shortly after the deal is complete, a move that wouldn’t be unexpected given that Spencer will be leading gaming efforts. Kotick described Microsoft move as a chance to further strengthen” Activision Blizzard’s workplace culture. This set a new standard for inclusiveness.

He didn’t outline specific plans for reform, but did say there would be “minimal changes” to staff counts after the union was complete. Kotick also saw this helping his company better compete as metaverse gaming rises to prominence. In that light, this may be as much a matter of future-proofing the company as anything else.

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