Originally projected to close by the end of Microsoft’s fiscal year in June 2023, it now seems likely that Microsoft’s acquisition of Activision Blizzard (ATVI) may take longer to get done, if at all. This past week the FTC made a statement that they are seeking to block the deal, setting an evidentiary hearing for August 2023, but not filing an injunction to block the deal in the Federal court system. So what does this all mean? It means that this acquisition will continue to be the hottest topic in the gaming world for what is most likely many months to come.
Microsoft (MSFT) and ATVI continue to remain confident that the deal will close with ATVI’s EVP of Corporate Affairs Lulu Meservey stating, “Any claim the deal is anticompetitive ignores facts; the deal benefits gamers and the industry, especially given competition abroad. We look forward to proving our case in court and closing our deal with Microsoft.” Microsoft made their own statement on the FTC’s filing through President Brad Smith who said, “We have committed since Day One to addressing competition concerns, including by offering earlier this week proposed concessions to the FTC. While we believe in giving peace a chance, we have complete confidence in our case and welcome the opportunity to present it in court.”
As Smith alluded to, Microsoft was wheeling and dealing quite a bit this week. In addition to an already offered 10-year commitment to keep Call of Duty on PlayStation consoles at the same level of parity as Xbox consoles, Microsoft offered a similar 10-year deal to Nintendo and Valve (Steam). Nintendo accepted the deal, opening the gate to a return of the popular shooter to the Switch platform. Valve CEO Game Newell stated that the deal wasn’t necessary in his eyes as “Microsoft has always followed through on what they told us they would do so we trust their intentions.” He went on to state, “…we think Microsoft has all the motivation they need to be on the platforms and devices where Call of Duty customers want to be.”
In addition to the FTC’s actions this week, the UK’s Competition and Markets Authority (CMA) also posted a statement that included an unnamed, major 3rd party publisher’s support of the pending acquisition. Many believe that the unnamed party is Electronic Arts (EA); but there is no confirmation as of yet. Alongside Microsoft and Activision-Blizzard, Take Two Interactive and Valve have both publicly stated their support of the deal, while Sony (and in one instance Google) is the only one who has publicly opposed it among major publishers.
As far as what is next, the USA’s FTC, UK’s CMA, and other regulatory bodies will continue to review the deal with the next set of review phases set to be reported on in the first quarter of 2023. So far Saudi Arabia, Brazil, and Serbia have approved the deal with no concessions.
Image from: Microsoft
