Connect with us

Business

Microsoft bid for Activision likely to be blocked by FTC lawsuit: report

News Agencies

Published

on

Microsoft’s bid to acquire the video game publisher Activision Blizzard reportedly could face a major roadblock as early as next month.

The U.S. Federal Trade Commission (FTC) is likely to file an antitrust lawsuit to block the $69 billion takeover, according to Politico, citing people familiar with the matter.

A lawsuit challenging the deal is not guaranteed, and the FTC’s four commissioners have yet to vote out a complaint or meet with lawyers for the companies.

The FTC staff reviewing the deal are skeptical of the companies’ arguments, those people said.

MICROSOFT’S ACTIVISION BLIZZARD DEAL GETS GLOBAL SCRUTINY

At the center of the FTC’s concerns is whether acquiring Activision would give Microsoft an unfair boost in the video game market.

READ ON THE FOX BUSINESS APP

Microsoft’s Xbox is number three to the industry-leading Sony Interactive Entertainment and its PlayStation console.

Sony is concerned that if Microsoft made hit games like Call of Duty exclusive to its platforms Sony would be significantly disadvantaged.

“Any suggestion that the transaction could lead to anticomp effects is completely absurd. This merger will benefit gamers and the US gaming industry, especially as we face increasingly stiff competition from abroad,” Activision spokesperson Joe Christinat told Politico.

EU’S CALL OF DUTY: PROBE MICROSOFT-ACTIVISION BLIZZARD DEAL

Shares of Activision fell about 4% in extended trading.

Microsoft announced the deal in January, in the biggest gaming industry deal in history.

Microsoft spokesperson David Cuddy told Politico, the company “is prepared to address the concerns of regulators, including the FTC, and Sony to ensure the deal closes with confidence. We’ll still trail Sony and Tencent in the market after the deal closes, and together Activision and Xbox will benefit gamers and developers and make the industry more competitive.”

Microsoft Activision Blizzard

Bobby Kotick, CEO Activision Blizzard Inc.and Satya Nadella, CEO Microsoft

ACTIVISION BLIZZARD SHAREHOLDERS APPROVE PROPOSED $68.7B SALE TO MICROSOFT

FOX Business has contacted Microsoft and Activision for additional comment.

The EU opened a full-scale investigation earlier this month. The EU competition enforcer said it would decide by March 23, 2023, whether to clear or block the deal.

Continue Reading
Advertisement

Breaking News

Advertisement

Editor Pick’s

Latest Entertainment

Entertainment1 hour ago

Chrissy Teigen shares photos from her dinner at the White House: ‘You want to steal but don’t because you want to be invited back’

Chrissy Teigen shares details of her trip to the White House. (Photo: Nathan Howard/Getty Images) Chrissy Teigen tried her very...

Entertainment5 hours ago

Why Nepotism Has Always Been a Hot Topic in Hollywood

They know you know what their parents do. So if they want to do what their parents do—or anything that...

Entertainment16 hours ago

George Clooney says he was ‘objectified’ in early roles

George Clooney walks the red carpet at the Ticket to Paradise premiere at Regency Village Theatre in Los Angeles on...

Entertainment17 hours ago

Oscar Predictions: Best Supporting Actor – Ke Huy Quan Is a Story Worth Honoring This Season

Rank Name Film Distributor 1 Ke Huy Quan “Everything Everywhere All at Once” A24 An aging Chinese immigrant is swept...

Entertainment19 hours ago

Sally Field reveals that Burt Reynolds was her worst onscreen kiss: ‘Just a lot of drooling’

Turns out, Sally Field didn’t exactly have a field day when it came time to kiss her Smokey and the...

Entertainment19 hours ago

New Trailer For Miss Cleo Documentary Hints At ‘Web Of Stories’ Surrounding Her Life

Youree Dell Harris, aka Miss Cleo, is pictured on Feb. 24, 2009, in Lake Worth, Florida. Youree Dell Harris, aka...

Entertainment19 hours ago

Jury begins deliberations in Harvey Weinstein rape trial

LOS ANGELES (AP) — Jurors began deliberating Friday in the Los Angeles rape and sexual assault trial of Harvey Weinstein,...

Entertainment20 hours ago

Man arrested in fatal shooting of Migos rapper Takeoff

HOUSTON (AP) — Police have arrested a 33-year-old man in the fatal shooting of rapper Takeoff, who was killed last...

Latest Sports

Technology Hot News

Is Elon Musk Really Going to Buy Twitter? Is Elon Musk Really Going to Buy Twitter?
Technology1 month ago

Is Elon Musk Really Going to Buy Twitter?

Elon Musk, the owner of the electric car company Tesla, CEO of SpaceX, and the richest man in the world,...

WhatsApp services were affected across Pakistan, restored after 2 hours WhatsApp services were affected across Pakistan, restored after 2 hours
Technology1 month ago

WhatsApp services were affected across Pakistan, restored after 2 hours

WhatsApp services were affected in various countries of the world, including Pakistan, and India due to this users were facing...

Bitcoin vs Litecoin: A guide to understanding cryptocurrencies Bitcoin vs Litecoin: A guide to understanding cryptocurrencies
Technology2 months ago

Bitcoin vs Litecoin: A guide to understanding cryptocurrencies

Cryptocurrencies currently occupy an odd place in society. They are no longer the super niche bizarre currency beloved by tech...

Personal data of people is selling on Google Play and Google Ads Personal data of people is selling on Google Play and Google Ads
Editor Picks3 months ago

Personal data of people are sold on Google Play and Google Ads

It’s been two to three years since Google has been unknowingly hosting multiple apps from malicious actors who sell personal...

Protonmail is down a second time in the past 24 hours Protonmail is down a second time in the past 24 hours
Technology5 months ago

Protonmail is down a second time in the past 24 hours

An end-to-end encrypted email service Protonmail is down a second time in the past 24 hours, netizens reported on social...

What's better for the student: a tablet or a laptop What's better for the student: a tablet or a laptop
Technology6 months ago

What’s better for the student: a tablet or a laptop

Some analysts argue that computers have outlived their usefulness. There is some truth in this: PC and laptop sales are...

Tesla founder Elon Musk holds the Twitter deal temporary Tesla founder Elon Musk holds the Twitter deal temporary
Technology7 months ago

Tesla founder Elon Musk holds the Twitter deal temporary

USA: Elon Musk, the founder of companies like Tesla and SpaceX, can actually buy anything in the world. Last month,...

How Zafar Supari is utilizing his ability on Snapchat? How Zafar Supari is utilizing his ability on Snapchat?
Technology7 months ago

How Zafar Supari is utilizing his ability on Snapchat?

Pakistan: Zafar Supari a public figure, businessman, and social media sensation has crossed one hundred thirty-three thousand 133k subscribers on...