Microsoft to buy Activision Blizzard, become 3rd biggest gaming company

Wall Street Journal:

Microsoft Corp. agreed to buy Activision Blizzard Inc. in an all-cash deal valued at $68.7 billion, using its largest acquisition by far to grab a videogame heavyweight that has been roiled by claims of workplace misconduct.

And:

The deal, if completed, would sharply expand Microsoft’s already sizable videogame operation, adding a stable of popular game franchises including Call of Duty, World of Warcraft and Candy Crush to Microsoft’s Xbox console business and its own games like Minecraft and Doom. Microsoft said the transaction would make it the world’s third-largest gaming company by revenue, behind China’s Tencent Holdings Ltd. and Japan’s Sony Group Corp.

And:

Shares in Activision had been down nearly 30% since California regulators filed a lawsuit against the company in July alleging sexual harassment and gender pay disparity among the company’s roughly 10,000 employees.

And:

Microsoft said in its announcement that Bobby Kotick would remain as Activision’s CEO following the deal, and report to Microsoft gaming chief Phil Spencer.

From Microsoft’s press release:

Mobile is the largest segment in gaming, with nearly 95% of all players globally enjoying games on mobile. Through great teams and great technology, Microsoft and Activision Blizzard will empower players to enjoy the most-immersive franchises, like “Halo” and “Warcraft,” virtually anywhere they want. And with games like “Candy Crush,” Activision Blizzard´s mobile business represents a significant presence and opportunity for Microsoft in this fast-growing segment.

Huge move. Did the cultural problems drive the price down so much that Microsoft felt the headache worth the long term gains?