Private equity firms have weighed acquiring Microsoft’s gaming business unit Xbox in recent months, a report said.

The Information reported that the valuation considered for Xbox was $100 billion to $150 billion.

The firms discussed a possible acquisition on an exploratory basis and did not enter negotiations with Microsoft.

The Information said this showed Microsoft could find a buyer if it fails to find a way to turn around sentiment in the Xbox business. The private equity firms were not identified. A Microsoft spokesperson said, "Xbox is not for sale."

The interest from private equity firms came as Microsoft was reviewing options such as spinning off Xbox as a wholly owned subsidiary or changing its structure. A spinoff would make a sale easier. Microsoft also reviewed the option of setting up a joint venture with other partners.

Xbox includes game publisher Activision Blizzard, which it acquired in 2023 for $75 billion. It has about 14,000 employees. Xbox has acquired many game studios, but revenue has not increased as much as expected. Revenue for the last fiscal year ended in June was $21.8 billion, down 7 percent from a year earlier. The adjusted profit margin fell to 3 percent.

Against that backdrop, Asha Sharma (아샤 샤르마), CEO of Microsoft’s Xbox division, moved to rebuild the business after taking office in February this year. In July, Xbox unveiled a plan to cut 3,200 employees, about 20 percent of staff, over a year and increase investment in popular games such as Halo and Minecraft.

Xbox revenue is about 7 percent of Microsoft’s total revenue.

Few buyers can raise more than $100 billion on their own. The Information reported multiple companies would be likely to participate together if a deal is struck.