Microsoft (NASDAQ) is buying Activision Blizzard for $69 billion as part of its effort to boost its metaverse plans. According to the tech giant’s CEO and chairman Satya Nadella, gaming “will play a key role in the development of metaverse platforms.”

Microsoft has announced that Activision will be purchased for $95 per Share in an all-cash deal valued at $68.7 Billion. Microsoft could become the third largest gaming company based on revenue with the deal. It will close in 2023.

We will bring a new era to gaming together with @ATVI_AB. This will put creators and players first, make gaming accessible, safe and inclusive for all, and create a safer gaming environment. https://t.co/fF2Ig3gSfx

— Satya Nadella (@satyanadella) January 18, 2022

Microsoft believes that the acquisition will support its growth in the gaming business, as well as provide the “building blocks” for the metaverse. Nadella said:

Gaming is one of the most vibrant and interesting entertainment categories across all platforms. It will play an important role in developing metaverse platforms […]Activision Blizzard has many great franchises that will accelerate the development of Cloud Gaming. Cloud Gaming allows more people to play Xbox with their smartphones, tablets, and other devices.

Bobby Kotick (Activision Blizzard CEO) will remain in control until the deal is closed. The reins of the company will then be taken over by Phil Spencer, Microsoft Gaming CEO.

Bill Gates, Microsoft’s co-founder and CEO said in December that meetings on the metaverse would be held sooner than anticipated. Based on insider information, he might have spoken out.

Back in November, Nadella unveiled the company’s metaverse plans through an upgrade to its “Teams” service. Later this year, the upgrade will make it possible to create personalized avatars and host virtual meetings. The CEO also stated at that time that people should “absolutely expect” Microsoft to integrate metaverse features into its Xbox gaming consoles.

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