The Federal Trade Commission (FTC) is reportedly preparing to file a lawsuit against Microsoft’s plan to acquire Activision Blizzard for $68.7 billion. The lawsuit could be filed as soon as next month, Politico. The news outlet reports that both CEOs Satya Nadella and Bobby Kotick have already been summoned to speak and address the commission’s concerns. However, the FTC is not convinced.
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The report outlines that a number of steps must be completed before the regulator can act. Some of those steps include a vote by its commissioners. If ultimately approved, the deal between Microsoft and Activision Blizzard could face hurdles in the US, Britain and the European Union. This comes despite Microsoft’s repeated attempts to convince regulators that the Activision acquisition would not have a negative impact on competition in the gaming.
Activision has vowed to fight the FTC lawsuit if it comes to fruition. “ We are committed to continuing to work with regulators around the world to allow this deal to proceed, but we will not hesitate to fight to defend this deal if necessary, ” Joe Christinat , a company spokesman, told The Verge . “ Any suggestion that the deal could lead to anti-competitive outcomes is completely absurd. This merger will benefit gamers and the gaming U.S. especially considering we face increasingly tough competition from abroad industry, .”
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Microsoft is also in a dispute with rival Sonyover the issue. Sony has also expressed concerns about the impact of the deal on the gaming industry and has said that its completion could harm competition.
The feud between the two companies has gotten pretty heated and ugly at times. Microsoft has accused Sony of paying developers to keep their content off its Game Pass , and just this week Sony claimed that Microsoft's plan is to get everyone to switch to Xbox and then raise prices. Both companies will likely repeat those arguments — and more — to any regulators who get involved in the case.
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Microsoft announced its plans to acquire Activision Blizzard earlier this year. At the time, it said it would buy the company for $95 per share, valuing the all-cash deal at a whopping $68.7 billion. The deal would make the combined entity the “third-largest” gaming company by revenue, according to Microsoft, and would make titles like Call of Duty, World of Warcraft, and Candy Crush available. Microsoft plans to add Activision Blizzard games to Game Pass as part of the deal. However, regulatory concerns must be addressed before the deal can be finalized.
Source: www.theverge.com
