Microsoft’s $69 Billion Activision Deal Could Be a Blunder
The tech giant is acquiring a company weighed down by workplace scandals and complaints over game quality. Regulators will be taking a close look, too.
Big bet.
Photographer: Michael Kovac/Getty Images
Microsoft Corp. is going all in on gaming. On Tuesday, the technology behemoth announced an agreement to buy Activision Blizzard Inc. for $69 billion in cash. If the deal goes through, it would become the biggest acquisition in the company’s history. But is this mega-deal a smart move?
At first blush, the merger makes sense. Gaming is one of the largest and fastest-growing consumer businesses and a rare area that could move the needle for a multitrillion-dollar company like Microsoft. According to research firm Newzoo, the global gaming market is projected to grow to $219 billion by 2024 from $180 billion last year. So Microsoft’s aim is to strengthen its position in the category by buying the largest publicly traded U.S. video game publisher.