Microsoft’s $69B Activision Blizzard deal will reportedly clear EU hurdle

Mar 03, 2023

Simone Del Rosario Business Correspondent

By Simone Del Rosario (Business Correspondent), Emma Stoltzfus (Editor)

Antitrust regulators in the European Union are set to greenlight the $69 billion deal between Microsoft and gaming giant Activision Blizzard, according to a Reuters report. Officials have until April 25 to publicly announce their decision.

The deal has been in limbo since Microsoft made the bid more than a year ago, facing challenges by antitrust agencies in the U.S., EU and U.K. Activision Blizzard, which is home to brands like Call of Duty, Warcraft and Candy Crush, would be Microsoft’s biggest takeover to date.

Sony is the biggest challenger to the deal in the private sector. The company has argued Microsoft’s ability to make Call of Duty an exclusive Xbox game would damage Sony’s business. To allay those concerns, Microsoft has already offered long-term agreements to keep Call of Duty on other platforms. Last month, the company signed 10-year agreements with Nintendo and Nvidia. In December, Microsoft President Brad Smith said Microsoft also offered Sony a 10-year contract to make Call of Duty available on PlayStation the same day it comes out on Xbox.

The offer to license deals to rivals seems to have done the trick in the EU, where regulators are usually tougher on tech than those in the U.S. But Microsoft is facing a changing dynamic at the U.S. Federal Trade Commission with progressive antitrust enforcer Lina Khan at the helm.

The FTC has asked a judge to block the deal outright, while the U.K. has suggested Microsoft sell off Call of Duty to make it work, something Smith has said it’s not willing to do.

The FTC and Khan are coming off a high-profile loss against Meta, failing to block the Facebook-company’s deal to buy virtual reality startup Within. That deal closed last month after Meta’s victory. The FTC trial against Microsoft is set to begin Aug. 2.

For more: FTC swings big against Microsoft, Meta, but may have a losing strategy

Tags: Activision Blizzard, Call of Duty, European Union, Federal Trade Commission, Lina Khan, Meta, Microsoft, Playstation, Sony, Xbox

SIMONE DEL ROSARIO: A BIG UPDATE IN THE MUCH CONTESTED DEAL BETWEEN MICROSOFT AND GAMING GIANT ACTIVISION BLIZZARD.

E-U REGULATORS ARE SET TO GREENLIGHT THE $69 BILLION DOLLAR ACQUISITION, ACCORDING TO REUTERS SOURCES, THOUGH THEY HAVE UNTIL APRIL 25TH TO ANNOUNCE THE OFFICIAL DECISION.

THE DEAL’S BEEN IN LIMBO SINCE MICROSOFT MADE THE BID MORE THAN A YEAR AGO, CHALLENGED BY ANTITRUST REGULATORS IN THE US, EU AND UK.

ACTIVISION BLIZZARD, HOME OF CALL OF DUTY, WARCRAFT AND CANDY CRUSH, WOULD BE MICROSOFT’S BIGGEST TAKEOVER TO DATE.

SONY IS THE BIGGEST CHALLENGER IN THE PRIVATE SECTOR. THEY’VE ARGUED MICROSOFT’S ABILITY TO MAKE CALL OF DUTY AN EXCLUSIVE XBOX GAME WOULD DAMAGE SONY’S BUSINESS.

TO ALLAY THOSE CONCERNS, MICROSOFT HAS ALREADY OFFERED LONG-TERM AGREEMENTS TO KEEP CALL OF DUTY ON OTHER PLATFORMS. LAST MONTH, THEY SIGNED 10-YEAR AGREEMENTS WITH NINTENDO AND NVIDIA.

THE OFFER TO LICENSE DEALS TO RIVALS SEEMS TO HAVE DONE THE TRICK IN THE EU, WHERE REGULATORS ARE USUALLY TOUGHER THAN THOSE IN THE U-S.

BUT MICROSOFT IS FACING A CHANGING DYNAMIC AT THE US FEDERAL TRADE COMMISSION WITH PROGRESSIVE ANTITRUST ENFORCER LINA KHAN AT THE HELM.

THE FTC HAS ASKED A JUDGE TO BLOCK THE DEAL OUTRIGHT, WHILE THE UK HAS SUGGESTED MICROSOFT SELL OFF CALL OF DUTY, SOMETHING MICROSOFT SAYS IT’S NOT WILLING TO DO.

THE FTC, FOR ITS PART, IS COMING OFF A HIGH-PROFILE LOSS AGAINST META. IT FAILED TO BLOCK THE FACEBOOK COMPANY’S DEAL TO BUY VIRTUAL REALITY STARTUP WITHIN. THAT DEAL CLOSED LAST MONTH AFTER META’S VICTORY.

THE FTC TRIAL AGAINST MICROSOFT STARTS ON AUGUST SECOND.

I’M SIMONE DEL ROSARIO. IN NEW YORK IT’S JUST BUSINESS.