Check out what’s clicking on FoxBusiness.com
Microsoft’s bid to acquire video game publisher Activision Blizzard could hit a major roadblock as early as next month.
US Federal Trade Commission The (FTC) will file an antitrust lawsuit to block the $69 billion acquisition, Politico reported, citing people familiar with the matter.
A lawsuit challenging the deal is not guaranteed, and the FTC’s four commissioners have yet to dismiss the complaint or meet with the companies’ lawyers.
FTC officials reviewing the deal are skeptical of the companies’ arguments.
MICROSOFT’S OPERATION BLIZZARD DEAL RECEIVES GLOBAL Scrutiny
The Activision Blizzard Booth during the Electronic Entertainment Expo in Los Angeles. (AP Photo/Jae C. Hong/AP Images)
At the heart of the FTC’s concern is whether the Activision acquisition gave Microsoft an unfair boost in the video game market.
Microsoft’s Xbox third between industry leader Sony Interactive Entertainment and its PlayStation console.
Sony is worried that if Microsoft makes hit games like Call of Duty exclusive to its platforms, Sony will suffer a significant loss.
An Activision spokesperson provided the following statement to FOX Business.
“Any suggestion that the deal could have anti-competitive effects is completely absurd. This merger will benefit players and the US gaming industry, especially as we face increasingly tough competition from abroad. We are committed to continuing to cooperate with regulators around the world. allow it to continue, but will not hesitate to fight to defend the operation if required.”
The Microsoft logo is seen on a smartphone placed on top of the Activision Blizzard logo on display. (REUTERS/Dado Ruvic/Illustration/Reuters)
EU CALL FOR TASK: TRY THE MICROSOFT-ACTIVATION BLIZZARD FILES
SActivision bunnies in expanded trade was about 4%.
Microsoft announced the deal in January, the largest gaming industry deal in history.
Microsoft provided the following statement to FOX Business.
“As we’ve said before, we’re ready to address the concerns of regulators, including the FTC and Sony, to ensure the deal closes with confidence. After the deal closes, we’ll still be watching Sony and Tencent in the market, and together with Activision. and Xbox will benefit gamers and developers and will make the industry more competitive.
Bobby Kotick, CEO Activision Blizzard Inc. and Satya Nadella, CEO of Microsoft (Photo by Patrick T. Fallon/Bloomberg via Getty Images | Microsoft / Getty Images)
ACTIVITY BLIZZARD shareholders approve $68.7 billion sale offer to MICROSOFT.
The EU launched a wide-ranging investigation earlier this month. The EU’s competition watchdog said it would decide whether to overturn or block the deal by March 23, 2023.
