In what looks to be the biggest deal news of the day, XBox maker Microsoft is reportedly planning to buy Activision Blizzard for $95/share, a premium of roughly 45% over Activision's previous closing price.

BIG @WSJ scoop hitting wire: Microsoft Nears Deal to Buy Activision Blizzard, Sources Say $MSFT $ATVI

— Cara Lombardo (@CaraRLombardo) January 18, 2022

Microsoft apparently took advantage of the fact that Activision's share price had become depressed in recent weeks due to reports about the company's "toxic culture" (the reports had mostly focused on sexual harassment allegations and the large number of employees who had been fired over these claims). Activision's shares surged 40% on the news, while Microsoft shares retreated 2%.

MSFT has reportedly agreed to buy the established video-game maker, which has produced classic titles dating back to the 1990s, for some $50 billion, according to WSJ.

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The deal would be Microsoft's biggest acquisition by valuation; Activision-Blizzard's price tag is roughly double that of LinkedIn, which MSFT decided to buy back in 2016.