FTC files for injunction to block Microsoft acquisition of Activision

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)

[Magog]

Looks like the deal isn't happening.

[AngainorG7X]

🤣 Yeah right, let’s see

[Godmars290]

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?

[giovonni]

@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

[blacktiger]

Correct Activision gets 5 billion dollar fee for cancelation regardless what the reason is

[F0XH0UND922]

Nobody should want this deal to go through. If you do, it's very telling. Congrats

[Christopher]

Way too early to say any such thing, tbh. Microsoft has deep political pockets in the U.S.

[DarXyde]

Yep.

My stance on all of this has been an emphatic "we'll see".

Trillion dollar corporation is gonna make trillion dollar corporation moves.

[crazyCoconuts]

Queue up the Honorable Senator from the State of Washington....

[343_Guilty_Spark]

Conspiracy theorist. I couldn’t just be the FTC doesn’t have a great case…it’s MSFT has corrupted politicians. Okay…

[Christopher]

***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.

[DarXyde]

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.

[giovonni]

@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

[frostypants]

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.

[Ashunderfire86]

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!

[maniacmayhem]

*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.

[Lifexline]

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.

[frostypants]

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.

[sparky77]

This is good for MS it means they no longer have to wait until 2024 for their trial.

[S2Killinit]

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.

[343_Guilty_Spark]

I hate to disappoint you… it’s happening. FTC has no case.

[1Victor]

@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.

[--Onilink--]

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

[Cockney]

Its the same thing the cma did post denial

[FinalFantasyFanatic]

It's been leaning in that direction for a while, despite Microsoft's best efforts.

[frostypants]

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.

[meanmallard]

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.

[theindiearmy]

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.

[UltimateOwnage]

lol, restricting options and competition by literally buying it up is exactly the opposite.

[ChasterMies]

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.

[excaliburps]

Yep. I don't want any Acti-Blizz games going Starfield. I mean, they won't lockdown all games but you can bet some will be exclusive.

[XiNatsuDragnel]

Deal might not happen who knows.

[MIDGETonSTILTS17]

Ooh noh…

I guess they’ll have to just make games with their existing abundance of studios…

[UltimateOwnage]

Good. Consumers lose when MS absorbs 3rd party publishers and restrict their games to the losing platform with the smallest audience of gamers. I can’t think of one merger they’ve done that resulted in better games or content for the consumer. It’s killed or mamed some of the best names in the industry that are now just a shell of their former status.

[giovonni]

Prolonging the closing process since MS can and would close before the July 18th deadline without the FTC. All this is doing is “wasting time” in a business sense making a company spend money in hopes they will give up/forfeit plans of an acquisition.

[GamingSinceForever]

FFS please let these two companies get married. And may they live happily ever after. I’m tired of hearing about it quite frankly. MS is stupid but not stupid enough t make COD exclusive anytime soon. Hell they will probably ruin the franchise long before they ever decide to make it an exclusive.

[mastershredder]

Blizzivisionsoft. It seems like it would be made up of awesome 80's and 90's era PC OGs making awesome games...but it's pretty much all the crust you don't want. With the greedy-miser way all three have been playing ball, they can all fall flat.

[Ryuk_2007]

Incompetent FTC couldn't even update their list of complaints. They are still saying the M$ lied to EU regulators when EU regulators came out 6 months ago and debunked it. Hell, there's even a bit about how the stadia pro is soon to be discontinued when that actually happened 4 1/2 months ago. Even the CMA dropped the console concerns about Sony yet the FTC is still hanging on. Good lord

[hotnickles]

They really are terrible. We are run by truly unimpressive people. Government and Corporation alike. This is like watching the special Olympics play out only I have no empathy or compassion for corporations and governments.

[giovonni]

It looks like to me the FTC doesn’t fully understand how the market works they’re just blocking it because it’s a big corporate acquisition. Khan was even asked “ why are you protecting Sony” who controls 68% of the market. She danced around that answer, Cardell was asked if the CMA had contact with the FTC and she was reluctant to share that information. It’s fishy to say the lease. Then khan was relying on the EU blocking the deal to strengthen the stance” it’s going to be interesting to see how long this is going to drag out because The FTC is wasting time now

[MrDead]

What did Sony do with PlayStation differently to MS to outsell Xbox 4:1 and to gain that market share? Lets hope the FTC doesn't ask that question.

...but yes MS should be allowed to buy up the industry, just because they did nothing for a generation and a half that has made Xbox the least popular platform doesn't mean they shouldn't be able to buy up multiplatform publishers and ban them releasing games on competing platforms. MS hasn't gained any new games from the Bethesda buyout and banning just like they won't gain any games from the Activision buyout, but what they will get to do is ban those publishers games from competition and have control of a large amount the biggest IP's in gaming.

We all know this deal will go through because the right people will get paid to make it happen, MS doesn't spend countless millions in lobbying across the globe because they like to play fair. Just look at the EU lobbying, for the first time in EU history they've out lobbied the oil industry!!!

[giovonni]

@mrdead what Sony did was use their brand appeal to paint MS in a negative light. Yes some of it was self inflected, but let’s not act like Sony was innocent and this righteous company. Did they not try to keep certain 3rd party games off competitive systems and buy exclusivity for certain big name games and still doing so? The misconception is MS did it first, That’s incorrect. Sony also played to consumer ignorance ( stance on internet, digital gaming as just two examples). So if I was the FTC I wouldn’t ask that question at all. I would stick to the facts of why they believe the acquisition is harmful to console gaming. As of right now Sony holds the monopoly on gaming with 68% and leveraging their power to purchase big name games final fantasy, Street fighter and others off competitive systems. This isn’t bias rhetoric it’s fact.

[MrDead]

...are you comparing single third party games and studios to spending a combined $80 billion on two multiplatform publishers!?! Go home kid, you've had enough.

Like I said lets hope the FTC doesn't ask how Sony got such a market share over MS (one of the wealthiest companies that has ever existed) because then it would show that MS is in this position because of their own actions...This isn’t bias rhetoric it’s fact.

[giovonni]

@mrdead so you’re gonna honestly, confidently type that BS like you proved something? It’s the same thing. Sony, for years has been buying popular IPs with the intent to keep popular games off competitive systems causing consumers to think that one system is better than the other. Sony brought rights to the previous street fighter, and final fantasy remake, and tried to snatch exclusivity of Starfield with the intent to keep it exclusive to its system whether timed or not. It’s the same thing different degree of tactic. And you have to be down right delusional to think it’s not. Now back to the main point The FTC can use that “what has Sony done to be 4:1 to MS crap you suggested but that would be stupid because fact remains they did some under handed things to get that 68% market share.

[MrDead]

..yep looks like this one things single titles are the same as spending a combined $80 BILLION on removing 2 entire publishers. Then you try to make an embarrassingly laughable attempt to single out one platform for funding development for exclusivity, the thing that every platform holder has done is doing and still does... geeze kid it's like you've just started gaming this week

MS stopped making games when other platforms kept on, that's how competition outsells Xbox and reflects market share... also games don't sell on Xbox thanks to gamespass (according to Microsofts own reports) "cannibalising sales" so unless MS want's to cover the loss from GP MS has made Xbox is a less attractive platform.

[InUrFoxHole]

See you when the deal gets done! 💋

[Petebloodyonion]

I'll just point out that the FTC ppl are probably the same kind of ppl that try to prove that video games are too violent and they are the reason for all the violence in USA and should be banned.

[richardmmorales]

lol like Jack Thompson. Who has since been disbarred.

[darkrider]

I hope they see that one company having more studios then Sony and Nintendo combined isnt good.

[giovonni]

@04stiblubyu “Microsoft acquired Bungie in 2000, and its signature title, Halo, helped turn Microsoft's Xbox console into a major game platform. But the developer split from Microsoft in 2007 and stopped making Halo three years later. Since 2011, Halo has been developed by 343 Industries, a company owned by Microsoft.” - New York Times. The reality is, this assumption that Microsoft is bad for gaming and misinformation has to stop. Let’s deal with truth. Has Ms fumbled the ball, sure, but to say “consumers lose when they absorb 3rd parties” is absolutely wrong, when you examine the evidence. We aren’t going to talk about what their investment in online gaming has done for the industry. how they changed the console market by relating it to the PC, aggressively investing in cloud gaming. The impact of their games like Halo, Gears, Forza, sea of thieves, Ori, Cuphead etc. what I notice is a lot of deflecting, goal post moving, bias, and group think, when it comes to MS. I mean, there are people that are disagreeing with fact.

[rlow1]

As I’ve listened to a lot of lawyers on YouTube about the matter.

They tend to agree the FTC case isn’t very strong. Not only that, the rest of the world has approved the deal except the FTC and CMA. Which weakens their case as well.

As for the FTC, they literally used Sony’s objections and used them almost exactly. That alone is suspicious, which won’t look good in court. They also refused to acknowledge Nintendo as a competitor, making it an Xbox vs PlayStation thing. Again, in court this will look bad for the FTC. Theirs more and you can find more on YouTube. But it’s not looking good for the ftc.

As for the CMA, their big problem will be that they blocked it based on cloud gaming. Which, even according to Sony is a ways off and a small niche market in gaming. Interesting, the CMA had no problem allowing Disney and Paramount to buy up other studios to build up their streaming services. So this just doesn’t add up.