Microsoft to buy Activision in $68.7 billion all-cash deal

Microsoft will acquire video game giant Activision Blizzard in a $68.7 billion all-cash deal.

After the Wall Street Journal reported the deal, shares of the company plummeted in pre-market trading.

Microsoft shares fell after the announcement.

The company that makes popular games such as Call of Duty and Tony Hawk's Pro Skater has been in controversy for the last few months after reports of sexual harassment and inappropriate behavior by executives. Dozens of executives were fired after an investigation.

Bobby Kotick, who has faced calls to resign over the cultural problems within his company, will remain CEO and report to Phil Spencer.

Over the past several years, Microsoft has gotten more aggressive with gaming. Mojang was bought for over $2 billion. Last year, Microsoft completed a $7.5 billion acquisition.

Microsoft is competing with Meta to build technologies to create a virtual world called the metaverse. Microsoft CEO Satya Nadella was the first Big Tech CEO to publicly acknowledge the value of the metaverse. Virtual worlds are dominated by gaming, but the hope is that they expand to cater to other demographic and replace a lot of traditional social networking activity online.

Microsoft plans to acquire a company.

Both companies focused on the present in announcing the deal, with a highlight on the strength of mobile gaming. Candy Crush is one of the most popular and lucrative mobile games. The opportunity to promote popular gaming franchises from both companies was highlighted.

The story is evolving. You can check back for updates.