Microsoft has agreed to acquire Sonix, a cloud-based media player, for $3.4 billion.
The acquisition will strengthen Microsoft’s video game division, which has seen its share price rise more than 300% this year.
Microsoft CEO Satya Nadella has said that the acquisition will create “a new platform for video game creators and players.”
The deal will also add Microsoft’s entertainment subsidiary, Artix, to its portfolio of media companies.
Artix will now be owned by the Walt Disney Company, which will be headed by Disney CEO Bob Iger.