If you thought you’d be seeing co-branded games from Microsoft and Activision Blizzard soon, hold your thoughts because the merger may be on hold. The US Federal State Commission is likely set to block Microsoft’s acquisition and subsequent merger with Activision Blizzard, according to an exclusive Politico report released Wednesday.
In case you don’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 its belt.
Statements have been made
According to a report released 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, including Activision Blizzard’s net cash. When the transaction closes, Microsoft will become the world’s third largest game company by revenue, behind Tencent and Sony.” This move by Microsoft is seen as part of the company’s attempt to strengthen its presence in the video game industry, which has seen exponential growth over the past two decades.
However, it appears the merger may not go ahead, with the FTC stepping in with the lawsuit. Some of the biggest names that are part of the deal have already made their stance on the matter clear during their depositions. This move by the FTC follows an open letter that was written by four US senators three months after the deal was announced. In their letter, they had urged the commission to look closely at the sale.
The publication carrying the exclusive report on the matter cited “three [unnmaed] people familiar with the matter” as the source of this FTC move and has made statements indicating the deal will go on an entirely different tangent. While a full-scale lawsuit doesn’t appear to be something Microsoft should address, a review is underway. and things don’t look promising.
Whatever the outcome of the deal, we hope that the moves companies like Sony, which has participated in public debates with Microsoft on the issue, make moves that are in the best interests of gamers around the world. There is still a long way to go before this merger deal is finally finalized and there are developments that will come to light once the dust settles.
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