Microsoft is buying gaming company Activision Blizzard for $68.7bn (€60bn), gaining access to blockbuster games like Call Of Duty and Candy Crush.
The all-cash deal will let Microsoft, maker of the Xbox system, accelerate mobile gaming and provide building blocks for the metaverse, or a virtual environment.
The announcement on Tuesday arrived with Activision still in turmoil over allegations of misconduct and unequal pay.
Microsoft chief executive Satya Nadella said in a conference call with investors “the culture of our organisation is my number one priority” and “it’s critical for Activision Blizzard to drive forward” on commitments to improve its workplace culture.
Activision disclosed last year it was being investigated by the Securities and Exchange Commission over complaints of workplace discrimination.
Activision chief executive Bobby Kotick will retain his role, and he and his team will maintain their focus on driving efforts to further strengthen the California company’s culture and accelerate business growth.
The deal on Tuesday follows Microsoft’s $7.5bn acquisition last year of ZeniMax Media, the parent company of video game publisher Bethesda Softworks, which is behind popular video games The Elder Scrolls, Doom and Fallout.
Microsoft said in both cases that the deals will help beef up its Xbox Game Pass subscription service.