Xbox's acquisition of Activision is reportedly likely to face a roadblock from the FTC.
A new report claims that the FTC, one of the most powerful agencies in the United States, will block Microsoft's acquisition of Activision. Earlier this year, Microsoft announced that it had intended to purchase Activision for just shy of $70 billion, making it the biggest deal in the history of gaming. Immediately, this got a lot of pushback from regulators, politicians, and gamers.
According to Politico, the FTC is likely to block the Microsoft acquisition of Activision via an antitrust lawsuit, which would be incredibly damaging. It's important to note that Politico stated this is not guaranteed, but FTC staff is"skeptical" of Microsoft's arguments in favor of the deal.
"Any suggestion that the transaction could lead to anticomp effects is completely absurd. This merger will benefit gamers and the US gaming industry, especially as we face increasingly stiff competition from abroad," Activision spokesperson Joe Christinat told Politico."We are committed to continuing to work cooperatively with regulators around the globe to allow the transaction to proceed, but will not hesitate to fight to defend the transaction if required.
As of right now, it remains to be seen what will happen to this deal. Regulators in countries like Brazil have already approved the deal, so it's creating some divisive opinions on a global level. Either way, it's likely we'll hear more in the coming weeks and see if the FTC does move to block the deal with the lawsuit.
0commentsWhat do you think of this acquisition? Let me know in the comments or hit me up on Twitter @Cade_Onder.
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