Report: private equity weighed $100–150B bid for Xbox

Private equity firms explored a possible acquisition of Microsoft's Xbox gaming division in recent months, valuing the business at between 100 billion and 150 billion dollars, according to a report by The Information. The discussions were exploratory, and the firms never reached a negotiation stage with Microsoft, the outlet reported. A Microsoft spokesperson said Xbox is not for sale.

The report did not confirm the names of the private equity firms involved. It noted that buyers able to raise more than 100 billion dollars on their own are rare, so any deal would likely have required multiple companies working together.

The interest surfaced during a period when Microsoft was reviewing options for the division, including spinning Xbox off as a wholly owned subsidiary or setting up joint ventures with other partners.

A business under review

Xbox revenue for the fiscal year ended in June was 21.8 billion dollars, down 7 percent year on year, with an adjusted operating margin of 3 percent, according to the report. The division accounts for roughly 7 percent of Microsoft's total revenue and has about 14,000 employees.

Xbox includes Activision Blizzard, which Microsoft acquired for 75 billion dollars in 2023. Asha Sharma took over as CEO of the Xbox division in February and began rebuilding the business. In July, Xbox announced plans to cut 3,200 jobs — about 20 percent of staff over a year — and to increase investment in popular franchises such as Halo and Minecraft.