FTC is set to step in and block the takeover
Microsoft had announced its plans of taking over Activision Blizzard in January 2022
The deal was valued at $69 billion dollars
If you thought that you will soon see Microsoft and Activision Blizzard co-branded games, then hold your thoughts as the merger might be put on hold. The US Federal State Commission in all likelihood is set to block Microsoft’s takeover and the follow-up merger with Activision Blizzard as per Politico’s exclusive report published on Wednesday.
In case you didn't know, tech giant Microsoft announced its plans to acquire popular video game company Activision Blizzard for $69 billion earlier this year. Activision has been one of the biggest names in the world of video games, with games like Call of Duty and Candy Crush under their belt.
Statements have been made
As per a report published by Microsoft at the time of the announcement, “Microsoft will acquire Activision Blizzard for $95.00 per share, in an all-cash transaction valued at $68.7 billion, inclusive of Activision Blizzard’s net cash. When the transaction closes, Microsoft will become the world’s third-largest gaming company by revenue, behind Tencent and Sony.” This move by Microsoft is seen as a part of the company’s bid to boost its presence in the video game industry which has seen exponential growth in the last couple of decades.
However, it looks like the merger might not go ahead, with the FTC stepping in with the suit. Some of the biggest names that are a part of the deal have already cleared their stance on the issue during their depositions. This move by the FTC comes on the back of the open letter that had been written by four US Senators, three months after the deal was first announced. In their letter, they had urged the commission to look closely at the sale.
The publication carrying the exclusive report on the matter has cited “three [unnmaed] people with knowledge of the matter” as the source of this FTC move and has made claims that indicate the deal to go on a completely different tangent. While an all-out lawsuit does not seem to be something that Microsoft would have to deal with, there is a review underway, and things do not look promising.
Whatever the outcome of the deal is, we hope that the moves that the companies like Sony which has been in public debates with Microsoft about the issue, make moves that are in the best interest of gamers across the world. There is a long way to go before this merger deal is finally closed and there are developments that will come to the surface once the dust settles.
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Satvik Pandey
Satvik Pandey, is a self-professed Steve Jobs (not Apple) fanboy, a science & tech writer, and a sports addict. At Digit, he works as a Deputy Features Editor, and manages the daily functioning of the magazine. He also reviews audio-products (speakers, headphones, soundbars, etc.), smartwatches, projectors, and everything else that he can get his hands on. A media and communications graduate, Satvik is also an avid shutterbug, and when he's not working or gaming, he can be found fiddling with any camera he can get his hands on and helping produce videos – which means he spends an awful amount of time in our studio. His game of choice is Counter-Strike, and he's still attempting to turn pro. He can talk your ear off about the game, and we'd strongly advise you to steer clear of the topic unless you too are a CS junkie. View Full Profile
