By Subrat Patnaik

(Reuters] -Microsoft Corp on Tuesday announced that it would acquire Activision Blizzard (“Call of Duty”) videogame maker Activision Blizzard for $68.7 Billion in cash. It is the largest deal in this sector and will make Microsoft the third-largest game company in revenue.

Microsoft’s $95 share offer is a premium by 45% over Activision’s Friday close. Activision’s shares were at $89.55 as of the time this report was published.

“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 Officer Satya Nadella said in a statement https://news.microsoft.com/2022/01/14/microsoft-to-acquire-activision-blizzard-to-bring-the-joy-and-community-of-gaming-to-everyone-across-every-device.

Microsoft has made large investments in gaming in recent years, acquiring Mojang Studios (Minecraft) and Zenimax (Zenimax) in multi-billion-dollar deals.

Microsoft’s Xbox gaming platform has an advantage over Activision thanks to its library of Activision games like “Call of Duty” or “Overwatch”. Sony (NYSE: ) The Playstation enjoys a steady stream of exclusive titles for over ten years.

The shares of “Candy Crush”, a maker of candy, have fallen by 37% from their high of last year. This is due to allegations of misconduct at the videogame manufacturer.

The company continues to address these allegations. It stated Monday that more than three-dozen employees had been fired, pushed out or disciplined since July.

Bobby Kotick will remain Activision Blizzard’s CEO.

In recent years, the sector has seen consolidation with bigger firms snapping up smaller companies.

Take-Two Interactive (NASDAQ:) announced that Zynga would be purchased by it for $11.04 billion. The cash-and-stock deal, which will include popular mobile titles like FarmVille and other games for gamers on-the-go, was made last week.