Microsoft announced that it will acquire one of the largest video game makers Activision Blizzard for $68.7 billion.
According to media reports, the sale is the biggest deal in the sector and will make the combined entity the third-largest gaming company in terms of revenue after Tencent and Sony.
The deal includes Microsoft's acquisition of iconic franchises such as Call of Duty, Candy Crush and Warcraft.
Microsoft will have 30 in-house studios to develop games, and this comes at a time when Microsoft plans to release Activision Blizzard games on Game Pass, a subscription that allows playing dozens of video games.
Microsoft said it would acquire Activision Blizzard for $95 per share in a deal worth $68.7 billion.
The acquisition is expected to close in 2023, according to Microsoft.