Microsoft eyeing Steam parent company Valve acquisition in $16 billion all-cash deal (Rumor)

Redmond giant Microsoft might be prepping a massive $16 billion offer to acquire Valve, according to a rumor on X. The news comes from a content creator focused on Counter-Strike, but neither Valve nor Microsoft have commented on the speculation.

Valve, known for its PC gaming platform Steam and titles like Dota 2 and Counter-Strike. Valuation estimates range from $6 billion to $8 billion, which could make a $16 billion offer sound enticing. However, Valve’s substantial annual revenue suggests the price tag might be undervaluing the company.

While Gabe Newell holds a significant stake, the exact percentage remains unknown. This lack of transparency has made Valve a target for acquisition attempts in the past, with Microsoft itself expressing interest previously.

Potential benefits for Microsoft include expanding its market reach, bolstering its Game Pass subscription service, and maybe entering the handheld market through Valve’s Steam Deck.  

However, convincing Valve’s owners, particularly Gabe Newell, who is already immensely wealthy, might require more than just a hefty sum, as reported here.

Microsoft’s recent acquisition of Activision Blizzard faced scrutiny, and a Valve purchase could raise antitrust concerns due to Steam’s dominance in PC game distribution.