Microsoft Acquisition of Activision Blizzard Could be Approved by FTC by Next Month - News
by William D'Angelo , posted on 18 July 2022 / 3,752 Views
Microsoft's proposed deal to acquire Activision Blizzard for $68.7 billion could be approved by the Federal Trade Commission (FTC) by next month.
Microsoft has now sent over the requested documents to the FTC and now the US government agency has 30 days to request for more information. If it doesn't request more details it will automatically approve of the operation, according to Real Mi Central.
Brad Smith, the Microsoft President and Vice Chair, in May said the Activision Blizzard acquisition is "moving fast" for how big the deal is and it is now entering the middle stages.
"It's moving fast, at least fast enough for an acquisition of this size," said Smith at the time. "We have received requests for information on this subject here in Brussels, but also in London and Washington. We answer questions, we give briefings and we provide the information requested."
Activision Blizzard shareholders have voted to approve Microsoft's acquisition of the gaming giant. More than 98 percent of the shares voted in favor of the acquisition at $95.00 per share.
The Communications Workers of America, the largest communications and media labor union in the United States, recently sent a letter to the FTC in support of Microsoft's acquisition of Activision Blizzard following a labor neutrality agreement with Microsoft.
Microsoft previously stated it expects the deal to close by June 30, 2023.
IPs that will be owned by Microsoft once the deal closes include Call of Duty, Warcraft, Candy Crush, Tony Hawk, Diablo, Overwatch, Spyro, Hearthstone, Guitar Hero, Crash Bandicoot, StarCraft, and more.
A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012 and taking over the hardware estimates in 2017. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel. You can contact the author on Twitter @TrunksWD.
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Pretty sure the deal will go through without a hitch.
Acquisitions like this have made me even more adamant about the claim that this gen is going to be a battle between who owns what studios.
Microsoft has certainly taken great strides in arming themselves with some massive heavy hitter developers but Sony isn't sitting by on the sidelines.
The only thing that has me (as well as a lot of other gamers.) confused is how things will play out in terms of exclusivity. I mean, what is the point in Sony or Microsoft spending literally billions for these companies to just get a little more content or to let them do essentially the same thing they were doing before these acquisitions?
We will see just how things turn out in the not so distant future but regardless of whatever happens this console gen is about to heat up.
-VIDEOGAME EXLUSIVITY WARS NINJA APPROVED-
The direction is having more content spread out on universal platforms like PC. More content = more $
I don't think this gen will change much IMO. Last gen games being brought over this gen makes it much tougher to get people to switch over. Who wants to give up the library they built during last gen for either system. Neither side is doing anything so special that someone would be willing to give those games up so easily.
Not to mention Xbox while buying a lot of studios hasn't done much beyond that. They have a promising future ahead of them but man they really need to get the ball rolling with releases.
Ironically the size of peoples libraries initially ties or nudges them to a new console but a thing like gamepass/playsation plus plus plus whatever its called gives reduces the barriers to switch over knowing they will take a large number of their games (albeit they will need to pay a subscription) with them.
The point is that now MS (for example) gets a piece of the PS pie through Activision games sold on that system. They also get to decide which games they want to keep exclusive to which platforms, and which ones they want to put everywhere in order to maximize revenue.
Basically, it gives them more options.
In the case of Sony and Bungie, now Sony gets a piece if the huge Destiny sales on XB and PC. They also get all of Bungie's expertise with live service games. Meanwhile, Bungie gets access to Sony's deep pockets and deep talent bench.
While I hate to use this 00's buzzword, there's a lot of synergy there.
The union representing the Raven QA workers endorsed the acquisition, and that was a pretty huge endorsement because one of the main things regulators were concerned about with the deal was the effect it would have on labor organizing efforts. Rick Hoeg, a mergers and acquisitions lawyer based out of Michigan who runs a YouTube channel explaining these issues, thinks the chances the deal goes through went way up with that endorsement.
I suspect the way this will go is that Microsoft will be approved to complete the purchase with the following conditions
- existing franchise games supported on other consoles for x number of years (I think this is already agreed)
- and this is the one I think will get it over the line......I reckon MSFT will be forced to adjust the gamepass price so that it is no longer a loss leader used to drive out competition and making it impossible for others to compete.
Good. Keep it moving smooth.
The fallout has begun
Oppressive damage done
Your many turned to none
To nothing
HEY HEY HEY
And I went
And I went on down that road
HEY HEY HEY
