If you haven't heard of the company, it's a studio that specializes in developing mobile first-person shooter games like Respawnables - Special Forces.
With that kind of expertise, and Activision Blizzard's growing appetite for mobile revenue, it's easy to deduce that the studio has been purchased to help pump fuel into the Call of Duty mobile games machine. Activision says the team will be "will be supporting development of an unannounced new mobile title within the Call of Duty™ universe."
Digital Legends has apparently been working with Activision Blizzard on this game for the last year, in tandem with new internal studio Solid State, Beenox, and Activision Shanghai.
We'd be remiss not to mention that while Activision Blizzard is expanding its operations, it is also reckoning with a number of lawsuits that have accused the company of fostering a culture of sexual harassment and toxicity. The company announced new policies based on those lawsuits and worker demands earlier today.