The plans for Microsoft to merge with Activision Blizzard is one of the biggest topics in the gaming industry right now. Microsoft being one of the biggest companies out there adding a huge company like Activision Blizzard under it’s belt would put it above all the competition like Sony and Nintendo. Fortunately for Microsoft they won the case against the Federal Trade Commission (FTC). What this means is that Microsoft and Activision Blizzard can officially merge, however there is something standing in the way, the FTC. The agency has the potential to file an appeal of the court loss against Microsoft. They have until Friday at midnight, as that’s when the pause on the deal expires.
Deciphering The Deal
On January 18th, 2022, Microsoft announced that it had the intention of acquiring Activision Blizzard for $68.7 billion in cash! Under the terms of their agreement, Microsoft would have ownership over Activision, Blizzard Entertainment, and King under the Xbox Game Studio Division. This is one of the biggest mergers in history! It would make Microsoft one of the biggest video game companies in the world alongside Sony and Nintendo. This news was met with some hesitation in the gaming industry. Sony warned them that this merger would prevent Playstation players from being able to play Activision Blizzard games. Microsoft then agreed to a 10 year to keep games like Call of Duty and other Activision Blizzard games multi-platform.
Related: Activision Blizzard and Microsoft’s FTC Trial Win Is Just the 1st Major Hurdle
Making A Merger
Prior to the court case of the merger between Microsoft and Activision Blizzard, Microsoft had some work to do. On Tuesday Microsoft reached an agreement with regulators in the U.K. to pause a separate legal battle over the merger. The U.K. Competition and Markets Authority blocked the purchase in April over concerns with competition. Microsoft appealed that decision in May, while Activision was given permission to become an intervening party in that appeal. Microsoft’s acquisition got the green light in May from the European Commission, which is a regulatory representing the 27-member Union. They gave the go after Microsoft agreed to allow Activision Blizzard games to be played on other cloud services in addition to Xbox’s.
See Also: More Bad News for Microsoft, as Xbox Misses Out on $800 Million Revenue Forecast – Is it a Sinking Ship?
What Happens Now with Activision Blizzard?
Following the case on Tuesday, Federal Judge Jacqueline Scott Corley denied the FTC’s request for preliminary injunction, blocking the merger for five days following the testimony. In a statement following the trial, Activision Blizzard CEO Bobby Kotick said that the merger would “enable competition rather than allow entrenched market leaders to dominate our rapidly growing industry.” Microsoft president Brad Smith has stated that the merger is “good for gamers, ” and has called the FTC’s lawsuit a “huge mistake” that would ” hurt competition, consumers, and thousands of game developers.”
Whatever comes from this case will undoubtfully changed the gaming industry forever. It will either put Xbox back on top of the gaming industry or will cement in last place against the competition. What are your thoughts on this case? Do you think the merger is a good idea? Let us know down in the comments!
Follow us for more entertainment coverage on Facebook, Twitter, Instagram, and YouTube.
