Microsoft recently announced its decision to acquire Activision Blizzard . The announcement sent shockwaves through the market, but the deal is reportedly not expected to close until 2023. The Federal Trade Commission (FTC) has already begun looking into potential antitrust issues .
Learn more: Microsoft acquires Activision Blizzard for $68.7 billion
Unlike other tech giants like Google, Apple, Facebook and Amazon, Microsoft has managed to avoid regulatory scrutiny many times, especially in acquisitions. However, Microsoft's announcement of its $68.7 billion has caught the attention of the FTC, which is now investigating whether the move could harm competition in the video game industry.
This deal is significant because if it goes through, Microsoft will become the third-largest video game company after Tencent and Sony. It's worth noting that the tech giant has already acquired Mojang (the developer of Minecraft), Double Fine Productions (creator of Psychonauts 2), and Bethesda Softworks. It made sense that the continued acquisitions of other companies would attract the attention of regulators, with the Justice Department now letting the FTC investigate the case.
See also: Sony to Microsoft: We expect Activision games to remain multiplatform
The FTC and the Justice Department are also planning to review their merger guidelines to see if they need to be made stricter. The move, announced earlier this month, comes amid a surge in announcements by big tech companies to acquire other companies, a trend that looks set to continue in the coming years.
Microsoft isn't the only company to announce the acquisition of another major company (Activision Blizzard). Sony has agreed to buy Bungie, the video game developer behind the popular Halo: Combat Evolved and Destiny 2.
Learn more: Video games: Sony acquires Bungie for $3.6 billion
Also, Take-Two Interactive wants to buy Zynga for $12.7 billion.
Source: TechSpot
