Bungie, the video game company behind the Halo and Destiny franchises, has agreed to be acquired by Sony in a $3.6 billion deal, the companies said on Monday.

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Bungie will become an independent subsidiary of Sony Interactive Entertainment following the acquisition, pending regulatory approval. Bungie will be led by its board of directors, which will be chaired by Pete Parsons, and its present management team.

“Bungie has created and continues to evolve some of the world’s most beloved video game franchises and, by aligning its values with people’s desire to share gameplay experiences, they bring together millions of people around the world,” Sony Group Corporation President and CEO Kenichiro Yoshida said in a statement. 

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“We will utilize the Sony Group’s diverse array of entertainment and technology assets to support further evolution of Bungie and its ability to create iconic worlds across multiple platforms and media.”

The Sony/Bungie agreement comes at a time when the game industry is on a buying binge. Take-Two Interactive, the publisher of Grand Theft Auto, has agreed to pay $12.7 billion for Zynga, the mobile gaming powerhouse, while Microsoft has agreed to pay $68.7 billion for Activision Blizzard, the game publisher.

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Bungie, on the other hand, has a history with Microsoft: the developer, which was created in 1991, was acquired by Microsoft in 2000 but later split out to become independent in 2007, but Microsoft was able to keep the Halo franchise rights. Bungie struck a 10-year publishing arrangement with Activision in 2010, but the deal was terminated early in 2019 when Bungie decided to become independent again.

“Both Bungie and [Sony Interactive Entertainment] believe that game worlds are only the beginning of what our IP will become. Our original universes have immense potential and, with SIE’s support, we will propel Bungie into becoming a global multi-media entertainment company dedicated to delivering on our creative vision,” Parsons, who is also the CEO of Bungie, said.