Microsoft announced on Tuesday that it will buy Activision Blizzard, the producer of the "Call of Duty" videogame franchise, for $68.7 billion in cash, the largest acquisition in the industry, making Microsoft the third-largest gaming company by revenue.

The $95 per share offer from Microsoft represents a 45% premium over Activision's Friday close. Before being delayed for news, Activision's stock was up over 38% at $65.39.

"Gaming is the most dynamic and exciting sector in entertainment across all platforms today," Microsoft CEO Satya Nadella said in a statement.Microsoft buys Activision Blizzard: Xbox takes Call of Duty for between 50 and 70,000 million dollars - Ruetir

During the epidemic, demand for video games has increased as consumers who are stranded at home play more games to keep themselves engaged.

The Activision catalog of titles, which includes "Call of Duty" and "Overwatch," provides Microsoft's Xbox gaming platform an advantage against Sony's Playstation, which has had a more consistent supply of exclusive games for years.

Activision Blizzard's CEO, Bobby Kotick, will remain in his position.

Take-Two Interactive Software announced last week that it would buy "FarmVille" creator Zynga for $11 billion in cash and stock, marking one of the largest industry-wide acquisitions ever.