According to The Information, several private equity firms explored the possibility of acquiring Microsoft's Xbox gaming business. The division was reportedly valued at between $100 billion and $150 billion.
However, the discussions were short-lived and never developed into formal negotiations with Microsoft. The firms were merely exploring whether a potential acquisition could be possible.
The reports come as Xbox CEO Asha Sharma has previously insisted that the business is not for sale. Speaking to Fortune, she also said she believes Xbox will remain an important part of Microsoft for a very long time.
Nevertheless, Fortune reported that several current and former Microsoft employees believe Xbox could be preparing for a potential sale, spin-off, outside investment, or conversion into a subsidiary. According to the report, a high-level presentation allegedly explored these scenarios after Sharma became Xbox's CEO.
Microsoft executive Judson Althoff pushed back against concerns about a possible sale. He emphasized Xbox's value to the company, arguing that Microsoft would not put one of the best leaders we have in charge of a business it intended to sell.
For now, there is no concrete agreement to sell Xbox. The reported interest from private equity firms amounted only to preliminary discussions that never progressed into formal negotiations.
As a Reminder, Asha Sharma Plans to Make Xbox Game Pass More Flexible.