Microsoft to buy 'Call of Duty' maker for $68.7b

Microsoft announced Tuesday it was acquiring "Call of Duty" and "Candy Crush" video game maker Activision Blizzard for $68.7 billion in cash.

It's the biggest deal in gaming industry history, and would make the Xbox producer the third-largest gaming company by revenue.

Microsoft's offer of $95 per share is at a premium of 45% to Activision's Friday close.

Microsoft has been making big investments in gaming, scooping up "Minecraft" maker Mojang Studios and Zenimax in multi-billion dollar deals in recent years.

Activision games like "Call of Duty" and "Overwatch" give Microsoft's Xbox platform an edge over Sony's Playstation, which has held a steady stream of exclusive games for years.

Microsoft Chief Executive Officer Satya Nadella said in a statement "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."

Shares in Activision have slumped more than 37% since hitting their record high last year, largely hurt by allegations of sexual harassment and other misconduct at the company.

Activision on Monday said it was still addressing those allegations and had fired or pushed out more than three dozen employees and disciplined another 40 since July.