Microsoft seeks with ZeniMax to strengthen in action video games.
Microsoft Corp (NASDAQ: MSFT) said Monday it would acquire ZeniMax Media for $ 7.5 billion in cash, strengthening its Xbox video game offering with the studio behind titles like Fallout and the relaunch of Doom.
ZeniMax is the parent company of Bethesda Softworks, which has also produced hits like The Elder Scrolls, Wolfenstein and Dishonored.
The deal comes more than a week after Microsoft’s failed bid for the US assets of short video app TikTok, which has now structured its deal as a partnership with Oracle (NYSE: ORCL) and Walmart (NYSE: WMT) in place of a direct sale.
Microsoft said it plans to add future Bethesda games to its Xbox Game Pass monthly subscription service when they are released on Xbox or personal computers. The service now has more than 15 million subscribers, the company added.
According to Microsoft, Bethesda’s management leadership and structure will be maintained.
Video games are in high demand as users have been forced to stay home during the COVID-19 pandemic and Microsoft is looking to offer them many ways to play through its cloud service and consoles at different prices.
Microsoft said the ZeniMax deal will close in the second half of fiscal 2021 and will have minimal impact on adjusted operating income in fiscal 2021 and 2022.