Microsoft Presses Ahead With Activision Acquisition, Confident In UK, EU Approval By Benzinga
Benzinga – Microsoft Corp (NASDAQ: MSFT) is forging ahead with plans to acquire Activision Blizzard Inc (NASDAQ: ATVI) for $69 billion, according to The NY Post, despite opposition from the U.S. Federal Trade Commission (FTC) over antitrust concerns.
Despite being criticized by FTC Chair Lina Khan as a monopolistic mega-merger that will stifle competition in the video game industry, Microsoft is reportedly optimistic about securing approval for the acquisition in the U.K. next week, as well as in the European Union next month.
This is in part due to Microsoft’s recent commitments to give rival companies like Sony Group Corp (NYSE: SONY) and Nintendo ADR (OTC: NTDOY) access to its popular Call of Duty franchise, which has swayed antitrust regulators in Europe and the U.K.
If Microsoft’s acquisition of Activision Blizzard gains approval from European regulators, the company plans to move quickly to finalize the deal at $95 per share, according to sources.
In dialogue with The NY Post, Penn University Professor Herbert Hovenkamp, an anti-trust expert, said: “If Microsoft makes a deal with the Brits and the European Union it can say that antitrust concerns are resolved, and if you’re a judge that’s not a helpful fact for the FTC.
“The FTC will be out there alone and it will make it more difficult for it to get any decision approved by the court.”
The proposed all-cash transaction would be Microsoft’s largest acquisition ever, and it would turn the company into the third-largest gaming company by revenue in the world.
Read Next: Microsoft Reportedly Discontent With Xbox Performance, Says Gaming Journalist: What’s Going On?
Photos: Anton Vierietin and FellowNeko on Shutterstock
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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