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CNBC reports:

– Microsoft will buy video game giant Activision Blizzard in a $68.7 billion all-cash deal.

– Activision makes popular game franchises such as Call of Duty.

– Activision has been mired in controversy in recent months due to allegations of sexual harassment and misconduct among company executives.

Microsoft announced Tuesday it will buy video game giant Activision Blizzard in a $68.7 billion all-cash deal.

Shares of Activision soared about 31% Tuesday morning following the news. Microsoft shares fell nearly 2% following the announcement. This would be Microsoft’s largest acquisition to date, followed by its purchase of LinkedIn in 2016 for $26.2 billion.

Activision, which is known for popular games such as Call of Duty and Tony Hawk’s Pro Skater, has been mired in controversy for the last several months following reports of sexual misconduct and harassment among the company’s executives. On Monday, Activision said it fired dozens of executives after an investigation.

Under the deal, Activision CEO Bobby Kotick, who has faced calls to resign over the cultural problems within his company, will remain CEO during the transition. Microsoft said Activision as a company will report to Microsoft’s Xbox boss Phil Spencer after the deal closes, implying Kotick could depart after the transition. Microsoft said it expects to close the deal in its fiscal 2023 year…

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