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Microsoft Lawyer States They Will Close Activision Acquisition If No FTC Resolution Reached

The recent pre-trial hearing revealed that Microsoft will close the Activision acquisition deal if the FTC doesn't come to a resolution.

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SullysCigar80d ago

Oof, if they did that it would cost them billions.

Orchard80d ago

I think you’re misunderstanding the term close.

Closing the deal here means finalizing it - completing the purchase of ABK - not abandoning the acquisition.

SullysCigar80d ago (Edited 80d ago )

So that would cost them $69bn, no? ;^p

Orchard80d ago

Lol - it happens to us all buddy, no harm done.

derek80d ago

You're misunderstanding Orchard. What Microsoft is saying is that they will force the FTC to seek injunctive relief in court if the cma and EU grant approval with or without concessions.

1Victor79d ago

Did anyone understood the article?
Basically it say if Europe gets resolved before their ftc court date they will offer the same “ remedies “ to the ftc
👇 👇 👇 👇 👇 👇
Wilkinson also stated that if the company works out any remedies with the European Commission (EC) of Europe or the Competition and Markets Authority (CMA) of the United Kingdom, it will also offer the same remedies to the FTC.

“The deal is undergoing review over in Europe and the UK and we are hoping that they will be resolved and if there are remedies that are appropriate we can come back to … the FTC to talk about a resolution.”

To prepare for the potential development to federal court, Microsoft and ABK have agreed to expedite the discovery schedule with the FTC, due to the deal’s termination date being on July 18, 2023.

For reference, FTC’s in-house trial is scheduled for August 2, 2023
🤦🏿no where it’s stated that Microsoft will go ahead without the approval of the FTC 🤷🏿 🤣
Also notice how the deadline for the purchase is July 18 and the court day is August 2 meaning if they want to fix this Europe is their only hope for them to bring some settlement with the FTC before July 18 otherwise the deal will fall through and they’ll have to pay the penalty.

+ Show (1) more replyLast reply 79d ago
Lightning7780d ago

They're saying if the FTC doesn't come up with a resolution/remedies or any good reason to block the Activision deal MS will go ahead and close the deal and go to the next phase. Which is near the final phase at this point.

80d ago Replies(1)
roadkillers80d ago

Just do it Microsoft. They are just making it look like they do something, FTC won’t let you be.

neutralgamer199280d ago

Agreed just do it and move forward. Because I want to see how much Sony will invest after this move

Sony isn't worth trillions but they are worth a lot and PlayStation is big part of their business

Square enix
Capcom
Sega

I would love to see Sony invest 25-30 billion and buy these 3 and all the legendary IP's

roadkillers80d ago

I wouldn’t care as long as the games still came to PC :)

onisama79d ago

25-30 billion....
Thats not even possible for sony.... Seems you dont know much in the subject
Well i will give you some free info:
Sony as a company worth around 90 billion with 22 billion cash and a yearly profit of 5 to 9 billion
But sony is in trouble with more than 1 trillion in debt!!!!!

In comparison MS is worth 2 trillion with 128 billion cash on hand and yearly profit of 135 billion a year and debt of 120 billion...

Bro money wise sony is smarter to dl what they are doing.... Buying talented studios.. If they went wild square unix is great for them as it worth 5 billion thats mean 7 billions close the deal

neutralgamer199279d ago (Edited 79d ago )

Road

I think Sony will release every game on PC and rightfully so because that's more money

onisama

Capcom 8.3 billion
Square enix 5.8 billion
Sega is 3.6 billion

That's 18 billion. As of September 2022 they had more than 10 billion for acquisitions and growth. In 2023 this number was going to go way up. That 10 billion is just for PlayStation by the way. In 2023 they will add 5-8 billion more in their pool

Sony also operates as a bank in Japan. If this Activision deal goes through you will see square enix deal announced the same week and Capcom will follow soon after

badz14979d ago

Sorry but those 3's worth are not even close to $15Bil, let alone 25-30!

isarai79d ago

I would love to see quality games, dont give a sh!t about acquisitions or investments. It's like you guys like the numbers more than fun games.

MadLad79d ago

Sega have been business buddies with Microsoft since the late 90s. I highly doubt they would go with Sony before they made an offer to Microsoft.
I still highly doubt Square Enix is even looking to sell and, honestly, I find it a whole lot more realistic them just selling their main IP to Nintendo if at all. They're easily the most relevant of the big three in the Eastern market. Though they'll probably just sell to Tencent if the time came.

Capcom seems the most realistic, honestly.

Sony doesn't concentrate on non Western focused releases. I really don't get this idea they're interested in Square.
If Sony wanted to buy, and Square was looking to sell, that would have been before they sold away all their prevalent western studios.

Just my two cents.

Sephiroushin79d ago

Tbh NamcoBandai would hurt them more.

SenorFartCushion79d ago

So you want less games made overall then?

onisama79d ago

Bto how old are you? Lol
You know what is +1trillion of debt?? And you want them to spend all the money on bank??? So how they will keep their studios going paying debts and what about their electronic divisions and tv entertainment???? Sony as a hole made 7billion net income in 2022
They are marely keeping think under control...
If they do what your saying sony will be bankrupt in 1 month

Be reasonable.. Taking a risk (economically) buying square enix will be their "wild" journey

@israi
I kinda have things for numbers as i study economic and the gaming industry entertain me both in playing games and also in the economic sense also have all platfroms for now (XBX-PS4-switch-PC) so I don't really care

DarXyde79d ago

Why do you want that?

Their games already don't skip PlayStation and it's more overhead for large publishers.

Don't feed into the "revenge acquisition" stuff.

Acquiring them doesn't make any sense. Microsoft is known for their corporate imperialism and it makes sense for them—they are far and away the least creative with the least inspired products where they throw money and subs at their problems. They've literally made 220+ acquisitions in about 35 years which is insane. Granted, Sony has a near monopoly on anime content distribution which is a problem in itself for a different message board.

I digress. If the purpose of buying those publishers is to stop those games from NOT being on PlayStation...I guess that makes sense, but Square et al would probably decline an acquisition from Microsoft, so why do it?

The one thing about this ABK acquisition that I would probably want to see is when it [likely] goes through and Microsoft goes after more publishers, their fans are still going to deny Microsoft's clear intention of creating a monopoly.

Fair warning to the naive lot: they bought Skype when there was not really any competition for it. There still isn't much competition to LinkedIn either since it has more than three quarters of the recruitment market share. If you think they're against cornering a market, you're dumb, blissfully ignorant, or just don't care because your team is doing well.

+ Show (7) more repliesLast reply 79d ago
Brazz80d ago

They will wait for CMA and EU comission to make a move. A fight with FTC after a block from CMA is useless and would cost too much money and time, it's all about EU and CMA.

Bobertt80d ago

Activision is a cancer to the game industry the FTC should tell them they can buy it if they break it up and sell off some of the companies Activision bought like Blizzard to mkae it less of a monopoly.

gangsta_red80d ago

"...less of a monopoly."

It wouldn't be a monopoly even with the whole purchase.

Bobertt80d ago (Edited 80d ago )

Activision Blizzard has Call of Duty, Overwatch, World of Warcraft, Diablo, Candy Crush etc. All are near or at the top of sales for PC, Consoles, and Mobile gaming. Them making those exclusive would make them a monopoly.

anubusgold80d ago

@Bobertt The apple store is a monopoly gamers can go else where without paying Microsoft a dime for games as long as steam is still around and playstation and nintendo saying its a monopoly are just people being salty.

derek80d ago

@ganstared it has nothing to do with whether or not the acquisition would create a monopoly. Why do people keep saying this? The only issue being decided is whether the deal would create less competition in the market which in theory includes a whole bunch of possible scenarios as result of the deal.

gangsta_red80d ago

@Bobbertt

"Them making those exclusive would make them a monopoly."

Absolutely positive that still wouldn't make it a monopoly. It's as if people never played the game and realize the goal of the game is what the word monopoly actually means.

@Derek
"it has nothing to do with whether or not the acquisition would create a monopoly. Why do people keep saying this? "

Not sure why you're asking me this. The point is how the OP and others continue to use the word monopoly in the wrong way.

The deal wouldn't create less competition in the market considering the games would still be playable on most devices. The only threat would be to PlayStation.

repsahj79d ago

for me it is still a monopoly because Call of Duty is like gasoline, everyone needs it. Imagine MS stop selling gasoline to Sony.

1Victor79d ago

I would laugh out loud if Europe CMA tossed the ball back to the FTC and keep the drama going for a few more months

+ Show (3) more repliesLast reply 79d ago
green80d ago

Define monopoly and then apply that definition to this acquisition detailing how it is a monopoly?

darkrider80d ago

When one company got more then double of the studio of the competition... And all those games are top seller in each category. All major fps except destiny are in their hands...

Not even Sony and Nintendo combined have more studios. And Phil told they aren't stopping with two publishers. This with the monopoly history of Microsoft, it's scary for us gamers, that want to have choice and not buy Microsoft consoles.

Orchard80d ago (Edited 80d ago )

@darkrider So... not a monopoly then.

They can have 1 billion studios, still not a monopoly if you have other options for games. A monopoly requires the "exclusive possession or control of the supply of or trade in a commodity or service.". If this was a true monopoly, the FTC would be going to court and would have a proper case, not seeking a settlement.

"And all those games are top seller in each category"

You're doing a disservice to other studios there, no? Are you saying Activision are better than EA at sports games? Better than Sony at single-player narrative experiences? Better than Nintendo at platformers? Clearly not, and Activision games are not top sellers in those areas.

"it's scary for us gamers, that want to have choice and not buy Microsoft consoles."

Microsoft buying Activision doesn't mean you can't buy a PS or Switch.

vallencer80d ago

It doesn't make them a monopoly because of the amount of games they have under their belt.

"the exclusive possession or control of the supply of or trade in a commodity or service."

That's the definition of a monopoly. So even with all those games they still don't have exclusive control of the gaming supply or trade. There's still Sony, Nintendo, Ubisoft, EA, Take 2, Tencent, and the list goes on. You don't have to like the merger or anything about it and that is completely fine but I really wish people would stop throwing around the word monopoly like it even remotely applies to this situation.

mark_parch79d ago

The only way Microsoft becomes a monopoly in the gaming space is if they buy Nintendo, Sony and Tencent. They're not even close to a monopoly after the Activision/Blizzard acquisition

+ Show (1) more replyLast reply 79d ago
The3faces80d ago

The FTC never had a case to begin with SMH

derek80d ago

The xbox community is again getting over confident about what is going to happen. The reality is these deals are more than likely to fail if they've gone this far down the road with regulators.

Orchard80d ago

“ The reality is these deals are more than likely to fail if they've gone this far down the road with regulators.”

Not when the regulators are the ones stating they want to make a deal and avoid federal court.

ActualEngineer79d ago (Edited 79d ago )

"The xbox community" ... easy there kid, everyone and their dog knows that Liza Khan is a deep state injected wannabe hard c*nt, placed there just to devalue the US economy and forward the depression narrative the democrats are trying to push forward with.

Now that Khan has managed to effectively piss-off big tech and the weapon industry all together, essentially dooming Biden as a being - not even simply as a politician, and the Republicans won the house ... we will see emails and conversation being leaked and the FTC will collapse. This is what happens when you f*** with google, apple, Microsoft, Amazon at the same time - you have your phone being spied on, the Alexa on your house turning on, your pc being harvested for data to incriminate in anything ... wait and see.

Should I also remind you how MS are best buddies with the NSA - CIA and they can put pressure directly from there?!

MadLad79d ago

This has been a joke since day one.