By Subrat Patnaik, Supantha Mukherjee | Reuters
Microsoft Corp (MSFT.O) is buying “Call of Duty” maker Activision Blizzard (ATVI.O) for $68.7 billion in the biggest gaming industry deal in history as global technology giants stake their claims to a virtual future.
The deal announced by Microsoft on Tuesday, its biggest-ever and set to be the largest all-cash acquisition on record, will bolster its firepower in the booming videogaming market where it takes on leaders Tencent (0700.HK) and Sony (6758.T).
It also represents the American multinational’s bet on the “metaverse,” virtual online worlds where people can work, play and socialize, as many of its biggest competitors are already doing.
“Gaming is the most dynamic and exciting category in entertainment across all platforms today and will play a key role in the development of metaverse platforms,” Microsoft Chief Executive Satya Nadella said.
“Microsoft isn’t new to the multi-billion dollar gaming industry thanks to its wildly successful Xbox platform. Still, their acquisition of Activision is a massive move, and tells us that the metaverse is here to stay. We’re seeing a growing interest in play-to-earn gaming and other innovations made possible through blockchain technology. Microsoft is now even more uniquely positioned to capitalize on these opportunities. “
–Omar Abdallah, Rose Law Group attorney