Microsoft to buy embattled Activision Blizzard for $68.7 billion
CBSN
Microsoft said Tuesday it is buying video-game company Activision Blizzard for $68.7 billion in a transaction that will bring titles such as "Warcraft" and "Call of Duty" to the software giant. The purchase comes after Activision was sued over its "frat boy" culture and faced allegations of sexual harassment.
Microsoft said it will pay $95 per share in an all-cash transaction. That represents a 43% premium to Activision's closing stock price on Friday of $65.39. Shares of the video game developer surged in premarket trading to as much as $90.
Microsoft said CEO Bobby Kotick will continue in that role after the acquisition is completed. Kotick has come under pressure from employees and some activist shareholders who want him to step down amid allegations he ignored complaints about sexual harassment.
