Microsoft reportedly preps to buy Steam owner Valve for $16 billion

Microsoft’s reportedly trying to buy Valve for $16 billion – Is this true?

Rumour has it that Microsoft are planning to boost their Xbox/Gaming division further with another major acquisition. This time, Microsoft are reportedly seeking to acquire Valve. For the uninitiated, Valve is the company behind the Steam gaming platform and game franchises like Half-Life, Portal, DOTA, Counter-Strike and Team Fortress. Acquiring Valve/Steam would undoubtedly give Microsoft Gaming a huge boost.

The latest rumour is that Microsoft are planning to offer $16 billion to buy Valve. This will reportedly come as part of an “all cash” offer. Today, Valve’s Steam platform is the dominant PC storefront, making it a huge asset for anyone who purchases the company.

Honestly, I think this new rumour is complete nonsense. $16 billion (£12.5 billion) feels like a low figure for a company as large as Valve. After all, they are the dominant PC gaming marketplace. That means that they get a cut from a majority of PC game sales. Beyond that, Valve’s gaming IP is very valuable, with Counter Strike, DOTA, and Team Fortress 2 being some of PC’s most played games.

The source of Microsoft’s latest Valve acquisition rumour comes from a user on X, and has not been backed up by independent sources from reputable journalistic outlets or other leakers.

With approx. $80b CCE, Microsoft is preparing an offer of $16b for Valve

No stock, all cash pic.twitter.com/VCZq6HkFmO

— Dior (@xDiorCS) May 22, 2024

No, Microsoft probably isn’t going to buy Valve/Steam

While Valve and Steam would be major assets for Microsoft, such an acquisition would have a profound impact on the PC gaming market. Microsoft would undoubtedly see a lot of scrutiny from regulators. Now that Microsoft owns Activision Blizzard, they operate both the Battle.net, and Microsoft Store on PC, two major PC storefronts. By owning Valve/Steam, Microsoft would become the dominant player in in the PC gaming market and have little competition. Only the Epic Games Store, GOG, the EA App, and Ubisoft Connect would stand in the way of Microsoft’s PC domination.

All in all, I don’t expect Microsoft to acquire Valve. The rumoured $16 billion bid seems too low for such a valuable set of assets, and it remains to be seen if Valve’s owners would be willing to sell up to Microsoft.

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