Microsoft plans to buy large but struggling video game company Activision Blizzard for nearly $70 billion, its biggest deal ever.
The blockbuster deal, announced on Tuesday, will make the company a leader in the $175 billion gaming industry.
Activision makes several popular titles, including Call of Duty and Candy Crush. However, in recent months, the company has been rocked by an employee revolt over allegations of sexual harassment and discrimination.
Microsoft wants this deal to strengthen their power in the metaverse. The acquisition helps Microsoft gain an advantage over rival Sony in the battle for the attention of gamers.
The incident also gives the software giant an edge over powerful new players in the gaming space, such as Amazon and Google.
Microsoft is valued at more than 2,3 trillion USD, second only to Apple. Taking over Activision would make Microsoft the world's third-largest game company by revenue, behind Tencent and Sony.
Microsoft now makes Xbox consoles and owns studios that produce hit games like Minecraft.
Microsoft has been looking to spend its massive cash reserves — more than $130 billion — to expand its consumer business. Microsoft has considered acquiring the booming social network TikTok and popular chat app Discord.
The previous record for the largest merger in the gaming industry was set just last week, when Take-Two Interactive, creators of games like Grand Theft Auto, announced plans to buy game publishers Zynga mobile game for more than 11 billion USD.