Pete Hines, vice-president of Bethesda Softworks, speaks during the Bethesda E3 conference on June 10, 2018, in Los Angeles.Microsoft Corp said on Monday it would acquire ZeniMax Media for $7.5 billion in cash, strengthening its Xbox video game offering with the studio behind titles such as Fallout and the Doom, as competition heats up with Sony Corp.
The deal comes more than a week after Microsoft’s failed bid for short video app TikTok’s U.S assets. TikTok has currently structured the deal as a partnership with Oracle and Walmart rather than an outright sale.Microsoft said it plans to bring Bethesda’s future games into its monthly Xbox Game Pass subscription service when they launch on Xbox or PC. The game pass now has more than 15 million subscribers, Microsoft added.
“Microsoft recognizes its need for consumer based revenue growth which we believe this deal will directly help drive along,” brokerage Wedbush Securities said in a note.