Will Microsoft play with Activision?
No suspension pending the judgment of the Ftc: Microsoft is free to go ahead with the acquisition (and it will have to do so by July 18th). For many observers, proceeding expeditiously will positively influence the judgment of the Federal Trade Commission
We can't talk about marriage yet, but one of the most important operations in the world of video games is now much closer and feasible. Judge Jacqueline Scott Corley called to express herself on the request for a preliminary injunction to block the acquisition of Activision Blizzard has in fact rejected the request of the US Federal Trade Commission, which, pending its decision, had in fact asked to block everything.
1/We're grateful to the court for swiftly deciding in our favour. The evidence showed the Activision Blizzard deal is good for the industry and the FTC's claims about console switching, multi-game subscription services, and cloud don't reflect the realities of the gaming market.
— Phil Spencer (@XboxP3) July 11, 2023
MICROSOFT AND FTC, THE BATTLE BEGINS NOW
But, in fact, the most important game has yet to be played. The proceeding before the Ftc will begin next August 2 while the decision is expected for the beginning of the year and, at least theoretically, the Federal Trade Commission could deviate from the positive opinion that Microsoft has already received from the European Commission and the competent authorities in antitrust matters from half the world (with the exception of the British Cma which, it is known, rejected the acquisition ) and ask the Redmond software house to step back.
2/Since we first announced this deal, our commitment to bringing more games to more people on more devices has only grown. We've signed multiple agreements to make Activision Blizzard's games, Xbox first party games and Game Pass all available to more players than they are today.
— Phil Spencer (@XboxP3) July 11, 2023
WHAT HAPPENS NOW?
But it is unlikely that Microsoft will wait for the FTC's verdict, especially now that it can proceed with the acquisition of Activision, also because, if it renounces it or does not proceed by July 18, the date agreed with the other party, it would have to pay 3 billion in fines.
3/We know that players around the world have been watching this case closely and I'm proud of our efforts to expand player access and choice throughout this journey. END
— Phil Spencer (@XboxP3) July 11, 2023
According to most analysts, Redmond will rush to finalize the operation, regardless of the pending judgment of the Federal Trade Commission. This is precisely in order to influence the outcome.
WILL THE ACQUISITION BLOCK THE FTC?
In fact, should the FTC reject the operation, the operation would have to be cancelled, with very strong repercussions for the shareholders of the two companies. The alternative for Microsoft would be to exit the American gaming market, but even here, considering the sales figures of Call of Duty and the main Activision IPs, there would be unimaginable and perhaps even worse repercussions than canceling the acquisition.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia-on-demand/microsoft-giochera-con-activision/ on Wed, 12 Jul 2023 09:19:42 +0000.