JUDY WOODRUFF: Microsoft announced
plans today to buy Activision Blizzard,

a huge leader in video game development,
in a deal valued at $75 billion.

But the acquisition comes
with significant issues.

There have been numerous
allegations of sexual misconduct
in the Activision workplace.

Geoff Bennett looks at those
concerns and what's behind the deal.

GEOFF BENNETT: Judy, thanks to
video games subscriptions and
the Xbox, Microsoft is already

a major player in the gaming
market, an industry generating
$175 billion a year in revenue.

But acquiring Activision will
allow Microsoft to up its own
game during a pandemic-fueled

gaming boom. Activision is the company
behind major hits like "Call of Duty,

"World of Warcraft," and "Candy
Crush." And the takeover would
make Microsoft the world's

third largest gaming company.

For more, we're joined by Kirsten
Grind of The Wall Street Journal.

Thanks for being with us.

And, if you can, put this
number in context for us, this
$175 billion, the $75 billion

acquisition. What does it mean
for the gaming industry generally?

KIRSTEN GRIND, The Wall Street
Journal: It's huge. It's just
one of the biggest deals,

period, one of the biggest all-cash deals.

And for the gaming industry,

it really puts so much under one
roof. So you had Xbox and now
you have Activision's hits that

will be Microsoft. So it gives Microsoft
so much more might than it had before.

GEOFF BENNETT: And Microsoft,
which makes the Xbox consoles,
owns studios that produce

hits like "Minecraft," it's gotten more
aggressive with gaming in the last several

years. How does this acquisition
play into their long-term tragedy?

KIRSTEN GRIND: Right.

Well, Activision has so many long
term franchises. So, with the
addition of Activision there,

as you said, they become the
largest gaming company by revenue
worldwide. So, it absolutely,

pending the deal's closure, makes them
a very serious player in the space.

GEOFF BENNETT: And this deal, as
you know and as you have reported,

this is coming as Activision faces
multiple regulatory investigations

into alleged sexual assault
and mistreatment of female
employees going back years.

And just yesterday, Activision
fired several of its own
executives following its own

investigation, its own review of what
transpired. Give us a sense of what is

happening within that company.
And has Microsoft indicated how
it will handle it moving forward?

KIRSTEN GRIND: That's right.

Well, Activision is really, quite frankly,
in trouble with its culture at this point.

It's facing three regulatory
investigations, the state of
California, the EEOC, the Securities

and Exchange Commission. We have
reported about mishandling of some
of the misconduct allegations.

Its stock is down about 30 percent
from the first of the lawsuits
about its culture last summer.

So it was facing pressure from
employees, from shareholders.

So this is a really -- it's
kind of a good solution, really,
for Activision at this point.

GEOFF BENNETT: And based
on your reporting, I mean,
do you know what happens to

Activision's CEO, Bobby Kotick? He's led
the company for more than three decades,

but there were allegations
that he was aware of some of
these complaints of misconduct,

harassment, even assault, but yet that
he neglected to share it with the board.

KIRSTEN GRIND: That's right.

We reported that in November.And
that's actually kind of what
led to Microsoft's approach when

they were in the middle of all
this turmoil after our story came
out. And so Bobby actually is not

expected to stay with the company after
the deal closes. Again, these deals can

take a very long time to close, and it's
also pending a lot of regulatory approval.

But, yes, he's not expected to stay.

GEOFF BENNETT: Can you give us a sense
of the nature of what's been alleged?

KIRSTEN GRIND: Definitely.

So, some of the regulatory agencies have
alleged sexual harassment, sexual assault,

gender pay disparity, just a broad range
of workplace misconduct across the board.

What we wrote about in our
November story in The Wall

Street Journal was about
how Bobby Kotick himself

knew about some of these workplace
misconduct allegations and
didn't tell the board about them.

GEOFF BENNETT: Big picture, as
we wrap up our conversation here,

this acquisition is almost akin to
Disney acquiring Marvel back in 2012.

Microsoft will now own a huge
piece of the gaming industry,
as we have been discussing.

What does this mean for gamers generally?

KIRSTEN GRIND: You know, I think --
going back to the culture questions,

I think this could be a
very good thing for gamers.

I think I heard a lot out there about how

it was harder to get behind a
company that was facing so many
culture issues. And if a company

like Microsoft can to help turn
that around, I think that would
be good for everyone, frankly.

GEOFF BENNETT: Kirsten Grind,
thanks so much for your
reporting and your perspectives

on this major deal between
Microsoft and Activision.

KIRSTEN GRIND: Thanks
so much for having me.