As many can remember the juggernaut announcement made this January, Microsoft is planning to acquire Activision Blizzard for more than $68 billion. The deal would be the largest lump purchase in the industry which would also shatter the previous buyout of Zynga from Take-Two Interactive which cost the firm $12 billion that same month. As for when the deal for the Xbox firm will finalized is said to take place sometime in the following fiscal year.
However, the approach Microsoft has followed to speeding up the process could be working. For one, Microsoft responding to its exclusivity plans remain neutral. Similar to honoring its deals with PlayStation for Bethesda projects, the same will be carried out for Activision titles too. Atop of that, major IPs will not be taken away from other platforms as well, Microsoft President stated.
Additionally, Microsoft also speaks in favor of unionization with a spokesperson commenting to back the effort from Activision Blizzard teams if desiring to do so. In a new report from SeekingAlpha, Microsoft has already handed in its required information for the FTC investigation. One of the largest concerns for the purchase was enabling a large-scale monopoly, but CEO Satya Nadella elaborated the deal does not fall under the criteria.
Alongside Microsoft’s actions and now issuing proper paperwork for the acquisition plans, it is speculated the deal now has a 30-day window for the FTC to challenge the arrangement. If not questioned effectively, the deal could face record progress and finalize sooner than projected. However, there is some takeaways from this. One being Activision has yet to provide its share of information for the deal.
Atop of that, the United Kingdom’s Competition and Markets Authority (CMA) is still challenging the acquisition as well. But if both parties are able to pass the 30-day timeframe, there is still some hurdles left to face. Video Game Chronicles points out that this could bring three outcomes:
Close the investigation and let the merger proceed unchallenged; Negotiate with the companies to add some agreed rules that will make sure the market stays competitive; Seek to stop the deal by filing for a preliminary injunction in federal court.
Ultimately time will tell if the deal is able to fulfill the requirements from both bodies. One month from now will spill details regarding the progress with the FTC investigation and the CMA is said to have a deadline lasting until the start of September. Recently, Sony Interactive Entertainment made record time for its latest Bungie acquisition which pass this past week. You can read the full report by heading here.
Are you confident in Microsoft making record progress in the Activision acquisition?