Microsoft made its biggest purchase ever on Tuesday, announcing an agreement to take over scandal-plagued video game giant Activision Blizzard, in an all-cash deal valued at $68.7 billion. The move will make Microsoft the world’s third-largest video game-maker while giving it control of some of the most popular games ever made, including the war simulation series Call of Duty and the fantasy behemoth World of Warcraft.
“Together with Activision Blizzard, we have an incredible opportunity to invest and innovate to create the best content, community and cloud for gamers,” Microsoft CEO Satya Nadella said in a conference call with investors Tuesday.
With Activision Blizzard, Microsoft is hoping to position itself as one of the next major entertainment companies, despite Activision’s reputation for a toxic work culture. Though Microsoft has long been associated with its Windows and Office productivity software, the company has steadily expanded its efforts to lead the video game industry with its Xbox brand. And it believes Activision represents a key investment in its gaming future.
Microsoft pitched its pending purchase of Activision, along with earlier acquisitions like Fallout- and Doom-maker Bethesda, as central to its effort to build itself into a Netflix-like company, investing heavily in content that convinces people to pay subscriptions. “As our platform becomes more attractive, the flywheel of content creators and players accelerates as the creative range on our platform continues to expand,” Spencer said.
