Video game maker Activision Blizzard saw its shares surge by over 30% on Tuesday, following reports that a possible takeover by Microsoft Corp. is nearing.

  • The all-cash transaction is valued at $68.7 billion, with Activision Blizzard shares priced at $95.00 apiece. This will make Microsoft the third-largest gaming firm in terms of revenue, just behind Tencent and Sony.
  • The transaction will include popular Activision franchises such as ‘Warcraft,’ ‘Diablo,’ ‘Overwatch,’ ‘Call of Duty,’ and ‘Candy Crush,’ along with global eSports activities under Major League Gaming.
  • Microsoft will benefit from the transaction with a boost to its Game Pass portfolio, with plans to launch Activision Blizzard into its portal which has hit 25 million subscribers. It will have 20 internal game development studios upon the closing of the deal.
  • The transaction is expected to be finalized by fiscal year 2023, subject to regulatory review and shareholder approval of Activision Blizzard. It has already been approved by the boards of directors of both companies.

Based in Santa Monica, California, Activision Blizzard has nearly 400 million monthly active players in 190 countries. MSFT is down 1.69%, while ATVI is up 37.64%