Activision is responsible for publishing several of gaming’s largest franchises including 'Call of Duty', 'Warcraft', 'Destiny' and even the popular mobile game 'Candy Crush'.

As well as PC gaming and mobile, the acquisition will help Microsoft’s Xbox cement its foothold in the console market, particularly with its Game Pass service which has been dubbed the 'Netflix of gaming'.

The service currently has 25 million subscribers and Microsoft has major ambitions for further expansion. It said many of Activision Blizzard’s games will come to the service now that the takeover has been announced.

Microsoft is paying $95 a share in the deal - a 45 per cent premium on Activision Blizzard’s closing value at the end of the last week. The company has nearly 10,000 employees, with studios around the world. When the transaction is completed, Microsoft will become the world’s third-largest gaming company by revenue, behind Tencent...