Will Activision deal get approved?

Will Activision Deal Get Approved?

The $69 billion acquisition of Activision Blizzard by Microsoft has been a topic of discussion for quite some time. After facing several hurdles, including objections from the US Federal Trade Commission (FTC), the deal is finally on the verge of being approved. In this article, we will explore the latest developments and the factors that will determine the fate of this massive deal.

The Deal

Microsoft announced its intention to acquire Activision Blizzard in January 2022. The deal, which was valued at $68.7 billion, was intended to expand Microsoft’s presence in the gaming industry and enhance its subscription and cloud-gaming business. Activision Blizzard, the parent company of popular gaming franchises such as Call of Duty, World of Warcraft, and Candy Crush, was seen as a strategic acquisition for Microsoft, allowing it to tap into the massive gaming market.

FTC Objections

However, the deal faced opposition from the FTC, which alleged that it would enable Microsoft to suppress competitors to its Xbox gaming consoles and its rapidly growing subscription and cloud-gaming business. The FTC also raised concerns about the potential impact on competition in the gaming industry, stating that the deal would give Microsoft a significant advantage over its competitors.

Why the FTC Opposed the Deal

• Market Dominance: The FTC argued that the deal would enable Microsoft to dominate the gaming market, stifling innovation and competition.
• Suppression of Competitors: The FTC alleged that Microsoft would use its dominance to suppress competitors, making it difficult for new entrants to enter the market.
• Impact on Cloud Gaming: The FTC expressed concerns about the impact of the deal on cloud gaming, stating that it would give Microsoft a significant advantage over its competitors.

The Latest Developments

After facing several setbacks, including a failed attempt to block the deal, Microsoft finally received approval from the FTC. The agency withdrew its objections and returned the matter to adjudication, effectively paving the way for the deal to be completed.

Why the Deal Will Get Approved

• Lack of Alternative: There is no viable alternative to the deal, making it unlikely that the FTC will block it again.
• Benefits to Consumers: The deal is expected to bring significant benefits to consumers, including improved gaming experiences and increased innovation.
• Enhanced Competition: The deal is expected to enhance competition in the gaming industry, as Microsoft will be incentivized to continue innovating and improving its services to remain competitive.

What’s Next?

The deal is expected to be completed in the coming weeks, pending regulatory approval in other jurisdictions. Once completed, Microsoft will be able to integrate Activision Blizzard into its Xbox division, enhancing its gaming portfolio and capabilities.

Conclusion

In conclusion, the $69 billion acquisition of Activision Blizzard by Microsoft is expected to be approved, pending regulatory approval in other jurisdictions. The deal is expected to bring significant benefits to consumers, including improved gaming experiences and increased innovation. While the FTC initially opposed the deal, it is unlikely that it will block it again, given the lack of alternative and the benefits to consumers.

Table: Key Points

Bullet Points: Key Takeaways

• The $69 billion acquisition of Activision Blizzard by Microsoft is expected to be approved.
• The deal is expected to bring significant benefits to consumers, including improved gaming experiences and increased innovation.
• The FTC initially opposed the deal, but it is unlikely to block it again given the lack of alternative and benefits to consumers.
• The deal is expected to be completed in the coming weeks, pending regulatory approval in other jurisdictions.