FTC sues to block Microsoft’s $69B purchase of Activision Blizzard
The Federal Trade Commission asked a court to block Microsoft’s $69 billion acquisition of video gaming giant Activision Blizzard with a preliminary injunction.
The FTC sued the companies on Monday in San Francisco Reuters reported, warning that if the deal was consummated the combined company could “begin altering Activision’s operations and business plans, accessing Activision’s sensitive business information, eliminating key Activision personnel, changing Activision’s game development efforts, and entering into new contractual relationships on behalf of Activision.”
An injunction would halt the deal, which has a July 18 termination deadline. Until then, either party can walk away, extend or renegotiate the terms of the sale, the outlet reported.
It’s not the first time the FTC has attempted to block the deal.
In December, the agency filed a complaint with an FTC Administrative Law Judge, citing antitrust concerns and stifled competition across the video-game sector if the $95-per-share deal completed.
A hearing for the case in the FTC’s administrative court is scheduled for August.
We welcome the opportunity to present our case in federal court,” said Microsoft president Brad Smith in a statement.
A representative for the FTC didn’t immediately respond to The Post’s request for comment. Reps for Activision also didn’t immediately comment.
Meanwhile, UK regulators — notoriously the toughest — have also moved to quash the mega merger over fears that it would hurt competition.
Microsoft has made concessions to get the UK’s Competition and Markets Authority (CMA) on its side.
The Xbox owner has agreed to give companies like Ubitus and Boosteroid access to Activision games on their cloud-based video game streaming services for 10 years.
It also signed a deal with Nintendo, which presently does not have access to “Call of Duty,” though it wasn’t enough to get the CMA to OK the merger.
Microsoft is set to appeal the CMA’s decision in a trial set for July 24.
Despite the roadblocks, European Union regulators approved Microsoft’s $69 billion bid to acquire Activision Blizzard last month under an agreement that Microsoft would ensure rival companies would continue to have access to Activision-developed games, including the ultra-popular “Call of Duty,” “World of Warcraft” and “Candy Crush.”
The modified agreement also ensures that Microsoft will bring all Activision games — “current and future” — to any cloud game streaming service, the European Commission (EC) — EU’s executive arm — said in a statement.
“Ultimately, the commitments will unlock significant benefits for competition and consumers, by bringing Activision’s games to new platforms, including smaller EU players, and to more devices than before,” the commission said.
Should the acquisition be completed, it would position Microsoft as the third-largest gaming company in the world by revenue, topped only by Tencent and Sony, respectively, and push Apple down to the No. 4 spot.
Activision Blizzard’s stock closed down less 0.8%, while Microsoft rose 1.6%.
With Post wires