Microsoft is up against increasingly formidable obstacles in its attempt to acquire Activision Blizzard. However, this confidence is being called into question by a new report, despite CEO Satya Nadella expressing that she is “extremely optimistic” that the deal would pass all of the national regulatory criteria.
Soon after Microsoft announced its intention to purchase the Call of Duty publisher for $70 billion, the Federal Trade Commission (FTC) initiated an inquiry into the Activision Blizzard transaction. This inquiry is still ongoing, and according to two sources who spoke to Dealreporter (via Seeking Alpha), FTC staff members have significant reservations over the deal.
The decision of the FTC will keep us going for a bit. Seeking Alpha’s investigation is currently taking place at the staff level. Within the following few weeks, it is anticipated that the investigation will go through the Bureau of Competition and on to the commissioners. This suggests that a decision might be handed out as soon as November.
The Federal Trade Commission is having discussions with Google and Sony, which are competitors in the technology sector, to determine the extent of the harm that the merger could do to the overall video game industry. For its part, Microsoft has only recently established a website that asserts the combination of Activision and Blizzard will truly benefit everyone. Activision Blizzard already publishes most of its games on every platform it can, and Microsoft has strongly hinted that the deal will eventually result in more exclusive titles for Xbox. Despite this, it will be beneficial for players because it will result in the publication of more games on more platforms.
Even after the completion of the Activision Blizzard merger, according to Microsoft, Nintendo and Sony will continue to hold the positions of the two largest market competitors in the gaming business. In addition, Microsoft stressed how it plans to implement beneficial workplace reforms if the purchase is finalized, which is something that Activision Blizzard desperately requires.
