The all-cash deal, if completed, would massively expand Microsoft’s already sizable video-game operations, catapulting it to become the world’s third-largest gaming company by revenue, behind Sony and Tencent. The proposed buyout, announced Tuesday, comes amid Activision’s stock rout following a gender-bias lawsuit filed against the company in California last July. (The Wall Street Journal, The Logic)

Talking point: The takeover would easily be Microsoft’s biggest acquisition, eclipsing its US$26.2-billion purchase of LinkedIn in 2016. Buying Activision would give the Xbox maker several major game franchises, including Call of Duty, Candy Crush and World of Warcraft. That could in turn bolster Microsoft’s Xbox Game Pass subscription service, which recently reached 25 million subscribers, but has in the past lagged company targets. In a release, the company also said the acquisition would “provide building blocks for the metaverse.” The Journal reported that Bobby Kotick, Activision’s CEO, is expected to step down after the deal closes, following reports that the company had for years ignored and downplayed sexual-misconduct allegations by staff. Activision shares closed nearly 26 per cent higher.