Microsoft deal with Activision came about late last year
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Microsoft (NASDAQ:MSFT) and Activision (NASDAQ:ATVI) began seriously talking about the almost $70B deal late last year, according to Microsoft gaming CEO Phil Spencer.
"Honestly this is a deal that happened pretty quickly," Spencer said in an interview on CNBC. "We really had some formative discussions about this specific opportunity late in the year and we just felt like now is the right time to add the right resources and capability to both companies."

Microsoft's Spencer and Activision CEO Bobby Kotick talked about the competitive landscape in video gaming when asked about potential antitrust risks with the transaction.
"I would say one of the motivations that we had for a partnership with Microsoft is the recognition that it's a big market, but there's an enormous amount of competition," Kotick said in the interview. "Whether it's Tencent, who has resources that are extraordinary and global footprint, or Sony or Facebook or Amazon or Apple or Google or Netflix or Disney. When you think about the race for the metaverse and for more influence in the gaming and the gaming ecosystem we've now seen more competition that ever before."
Kotick added that "the competition has never been greater and it's coming from all forms."
Spencer added that this "is an incredibly competitive marketplace in the gaming space. The truth is the largest gaming platforms on the planet are the mobile devices out there. Distribution on those devices is controlled by two companies."
The move will make Microsoft (MSFT) the third-largest gaming company by revenue, behind only Tencent (OTCPK:TCEHY) and Sony (NYSE:SONY).
The comments from the executives come after CNBC earlier today reported that the Microsoft deal for Activision is said to have a breakup fee of about $3B, which may be a sign that the companies believe they can secure antitrust approval.
"We're confident in our timeline for the getting the deal closed in our fiscal year 2023," Spencer said.
Earlier, Apple, Microsoft favorite large-cap tech stocks at Wedbush as questions emerge whether tech can move higher.