The Federal Trade Commission is expected to ask for a preliminary injunction in federal court to stop Microsoft from completing its planned $69 billion acquisition of Activision (ATVI)
Looks like the deal isn't happening.
🤣 Yeah right, let’s see
Isn't there some kind of deadline to this deal? If it doesn't go through, if it goes on for too long, Activision gets paid regardless?
@godsmars290 yes which is why the FTC is doing this. The FTC knows they don’t stand a chance so prolong it and have MS lose so much money fighting in hopes they drop the deal. The FTC can’t allow Ms to close the deal it then becomes to hard to fight
Correct Activision gets 5 billion dollar fee for cancelation regardless what the reason is
Nobody should want this deal to go through. If you do, it's very telling. Congrats
Way too early to say any such thing, tbh. Microsoft has deep political pockets in the U.S.
Yep. My stance on all of this has been an emphatic "we'll see". Trillion dollar corporation is gonna make trillion dollar corporation moves.
Queue up the Honorable Senator from the State of Washington....
Conspiracy theorist. I couldn’t just be the FTC doesn’t have a great case…it’s MSFT has corrupted politicians. Okay…
***I couldn’t just be the FTC doesn’t have a great case…it’s MSFT has corrupted politicians.*** Yeah, they'd definitely push it to the courts if they didn't have a case and instead not hold it up at all. And, MSFT has politicians in their pocket. This is a no-brainer. Our politicians are easily bought. Heck, look at two months ago when they suddenly cared about Sony being anti-competitive for a digital agreement signed a few years back, and then... suddenly... nothing. Those politicians just chose to make a big stink about something they knew nothing about with words Microsoft was saying themselves that same week for a few days for no reason at all.
343_Guilty_Spark, I realize that you're incapable of believing something so extraordinarily obvious, but sometimes a cigar is a cigar. You don't find it even slightly unusual that all of these countries approved the deal, and when the UK expresses skepticism, they're met with threats from Microsoft? You don't find it odd that the representative from Washington (MS' home state) that receives contributions from Microsoft has an issue with attempts to block it? You don't find it unusual that Senator Sanders of Vermont, a senator with a great track record of foreseeing and expressing issues with corporate moves years before it becomes an issue, raised concerns about the acquisition? None of that is taken into account, but somehow, someone over at the CMA with a former relationship with Sony from ages ago is more prominently suspicious? Right. I don't discount that possibility, but I think you're ignoring the clear precedent.
@DarXyde it’s fishy on both sides. However, this is politics all fair in love war and politics. MS has deep pockets to take this to trial. It’s The FTC’s job to build a strong case, however FTC hasn’t done so and that’s the problem. It’s also the FTC’s job to protect the consumers and competition by preventing anticompetitive deceptive and unfair business practices. Yet, they are protecting Sony who holds 68 percent of the market share. The FTC also can’t use speculative rhetoric to strengthen their case. We can feel how we feel but the FTC is not prepared
It's not just the US though. They still have the CMA to deal with in the UK. And this is if no one else throws another monkey wrench into it. If any major global jurisdiction blocks the deal, it realistically won't happen.
Of course they do, and you all will see how politics truly works in America. Business first before the people, and they always get what they want. Just ask Black Rock!
*And, MSFT has politicians in their pocket. This is a no-brainer. Our politicians are easily bought.* So MS has deep pockets to buy politicians but not members or the head of the FTC? Since we're playing conspiracy theories, Sony has deep ties in the states also, with Hollywood, real estate and so on...maybe Sony paid off the FTC and CMA? Why else would they both defend the market leader and complain about a cloud market that isn't there.
It’s actually a good thing now the ftc has to prove to a judge immediate harm which I wonder how they are going to prove that to a judge. It’s a Hail Mary imo.
The FTC doesn't do "Hail Marys". If they thought the deal was on the up and up they wouldn't waste their time trying to block it. Why would they? This is just to keep MS from moving forward prior to defending it in court.
This is good for MS it means they no longer have to wait until 2024 for their trial.
MS has everyone paid up. With this the FTC aims to prevent MS from going forward with the acquisition. Now we will see if the judge grants it and then what will happen will happen. I hope MS pays dearly for this though. Lets see of the FTC is actually able to perform its function.
I hate to disappoint you… it’s happening. FTC has no case.
@343:”I hate to disappoint you… it’s happening. FTC has no case.” I hate to disappoint you ….. but if they didn’t have a case they wouldn’t waste their and the courts time. @spark:”This is good for MS it means they no longer have to wait until 2024 for their trial” No this isn’t good for Microsoft as if approved they can’t go behind the court and purchase it before their day in court witch means the penalty goes into effect and they have to pay ABK I think about 10% of the acquisition price and or extend the deal for another year. Now let’s see Microsoft resolve are they going to pay ABK for failed acquisition and drop it or continue to be tied in courts for another year + and possibly pay again another fee making more free billions for ABK Bobby.
This literally doesn’t have anything to do with approving or denying the deal…. Its a restraining order and an injunction to prevent MS from just going ahead and doing the deal before they have the August 12 trial, because apparently the FTC “heard” they were thinking of doing that. Practically nothing has changed, they will still both go to court on August 12 and it will be decided then
Its the same thing the cma did post denial
It's been leaning in that direction for a while, despite Microsoft's best efforts.
I remember all the downvotes over a year ago when people pointed out that this deal wasn't close to done and the regulatory hurdles would potentially be epic. So many called this mess.
Microsoft President Brad Smith had this to say about the FTC’s recent actions: "We welcome the opportunity to present our case in federal court. We believe accelerating the legal process in the U.S. will ultimately bring more choice and competition to the market." Haha no you don't, you want to have them approve this deal without going to court. But of course, it wouldn't be a statement from Microsoft if it wasn't an obvious lie.
He's referring to the lawsuit that's already been filed by the FTC. This will accelerate that process now because it will bring the case to a federal court which run on a quicker timeframe.
lol, restricting options and competition by literally buying it up is exactly the opposite.
This doesn’t mean the deal won’t happen. These kinds of cases usually end with a settlement. Microsoft may have to spin off part of Activision as a separate company, sell studios to a competitor, or enter into a market access agreement with a competitor. But as a consumer, I don’t want the deal to happen. Competition is good for the video games industry just like it is good for all other industries.