Microsoft says Xbox not for sale after $100B buyout report

A group of private equity firms recently looked into a joint buyout of Microsoft's Xbox gaming unit at a valuation of $100 billion to $150 billion, The Information reported late Tuesday, citing people familiar with the discussions. The outlet said the talks were short-lived and exploratory, and they never became negotiations.theinformation.com

Microsoft rejected the idea. A company spokesperson told The Information that Xbox is not for sale and declined to comment further, according to MT Newswires. Power Up Gaming also reported the spokesperson's words: "Xbox is not for sale."windowscentral.com+1

Unnamed firms, no deal

The report did not say which firms were involved, Windows Central noted. It also did not say exactly when the discussions happened, beyond placing them in recent months, TheGamer reported. Interest from investors does not mean Microsoft looked for a buyer or agreed to anything, and the price range is not a sale price, Power Up Gaming pointed out.windowscentral.com+2

The valuation compares with the $68.7 billion Microsoft agreed to pay for Activision Blizzard in 2022, a deal that closed in October 2023.powerupgaming.co.uk

Sharma's restructuring

The report lands in the middle of a large overhaul under CEO Asha Sharma, who took over in February. Sharma told The New York Times in late September that "Xbox is not for sale," adding that Microsoft would pursue "the right partnerships, the right operating model and everything needed" to grow the business. Earlier, The Information had reported that Microsoft weighed options for Xbox that included turning it into a subsidiary, forming a joint venture, or spinning it out. CEO Satya Nadella and CFO Amy Hood later backed Sharma's overhaul plan instead.techtimes.com+1

The restructuring plan calls for cutting about 3,200 roles in Microsoft's 2027 fiscal year. Microsoft has also made several studios independent, including Double Fine and Compulsion Games, and moved Halo development to Activision. So far Sharma has cut 1,868 jobs, and she plans more layoffs this month, in November and in January, Fortune reported on October 20.fortune.com+1

Fortune also reported that several current and former staff members believe Xbox is being prepared for a possible sale, spinoff, outside investment or conversion into a subsidiary. Senior Microsoft executive Judson Althoff disputed that, saying the company would not have put Sharma in charge of a business it planned to sell. Sharma herself told Fortune: "I think that we're going to be an important part of Microsoft for a very long time".timesofindia.indiatimes.com+1