A brand new report says the FTC has “significant concerns” over the $70 billion deal.
Microsoft appears to be dealing with extra vital headwinds in its bid to accumulate Activision Blizzard. Although CEO Satya Nadella stays “very confident” that the deal will cross all nationwide regulatory necessities, a brand new report is looking that confidence into doubt.
The FTC launched an investigation into the Activision Blizzard deal quickly after Microsoft introduced its intent to buy the Call of Duty writer for $70 billion. That investigation is ongoing, and in response to two sources chatting with Dealreporter (through Seeking Alpha), FTC staffers have “significant concerns” over the merger.
We won’t have to attend too lengthy to listen to the FTC’s determination. As Seeking Alpha notes, “The review is still at the staff level and is expected to go through the Bureau of Competition and onto the commissioners over the next several weeks.” That means we might have a ruling as early as November.
The FTC is talking with tech rivals Google and Sony to gauge how damaging the merger might be for the video video games trade as a complete. For its half, Microsoft not too long ago printed a web site that mentioned the Activision Blizzard merger will truly be good for everybody. It’ll be good for gamers as it would publish extra video games on extra platforms, though Activision Blizzard already publishes most video games on each platform it might, and Microsoft has strongly hinted that the deal will ultimately lead to extra unique titles for Xbox.
As for the video games trade, Microsoft mentioned Nintendo and Sony will nonetheless be the largest gamers available in the market even after the Activision Blizzard merger. Microsoft additionally emphasised the way it intends to enact “positive workplace” modifications ought to the deal go through–something Activision Blizzard sorely wants.
Other regulatory our bodies look like simply as skeptical because the FTC. The UK’s Competition and Markets Authority not too long ago enhanced its investigation into the deal to see if it would lead to a “substantial lessening of competition” within the video games trade. Meanwhile, PlayStation boss Jim Ryan flew to the EU headquarters in Brussels to voice his issues on to regulators.
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