$68.7 billion! Microsoft will acquire Activision Blizzard at a premium of 45%.

Microsoft is close to acquiring video game developer Activision Blizzard for about $70 billion.

Bloomberg quoted people familiar with the matter as saying that Microsoft is about to reach a acquisition deal with video game developer Activision Blizzard, which has developed the Call of Duty series of games, which will be the largest acquisition deal Microsoft has ever made.

People familiar with the matter said the deal could be announced as early as Tuesday. Microsoft will buy Activision Blizzard for $95 per share in full cash, including Activision Blizzard's net cash, with a transaction valued at $68.7 billion.

According to Bloomberg calculations, the acquisition is at a premium of about 45 percent and the equity is worth about $74 billion.

Bobby Kotick will continue to serve as CEO of Activision Blizzard. Once the deal closes, Activision Blizzard will report to Microsoft Gaming CEO Phil Spencer.

The transaction is expected to close in fiscal year 2023 and will enhance non-GAAP earnings per share upon completion. The transaction has been approved by the boards of directors of Microsoft and Activision Blizzard.

Activision Blizzard's games include Call of Duty, Candy Saga, Warcraft, Diablo, Overwatch, and Hearthstone.

After the news, Activision Blizzard's U.S. stocks rose before the market, up nearly 40%.