Microsoft prepared to go court if FTC tries to block Activision deal - report

Rich Polk

Microsoft (NASDAQ:MSFT) is said ready to battle for its planned $69 billion purchase of Activision Blizzard (NASDAQ:ATVI) if the Federal Trade Commission files a lawsuit to block the transaction.

The make of the Xbox gaming console hasn't discussed a potential remedy with the FTC as the regulator's staff is finishing its probe into the deal and is expected to make a recommendation to commissioners soon, according to a Bloomberg report on Friday, which cited a person familiar.

Microsoft (MSFT) is said to be preparing to defend itself in court if the antitrust regulator files a lawsuit to block the mega deal, according to Bloomberg. The latest update comes after Politico reported earlier this month that the FTC is likely to file a suit to block the transaction.

The Xbox maker has informed regulators about talks with Sony (SONY) that would allow its popular "Call of Duty" game to be available on Sony's (SONY) PlayStation for ten years, though hasn't formally made a remedy offer as the review is not at that stage, Bloomberg reported.

On Thursday Activision Blizzard (ATVI) was added to Wedbush's Best Ideas List with the firm expecting the game maker's sale to Microsoft (MSFT) "highly" likely to be completed within the next six months.

Comments

[pius_twelfth]

The FTC has no case. The combined company will have a 10% mkt share. The FTC is also on a losing streak, having lost two recent attempts to block buyouts. Lastly, the federal courts have been stacked with judges appointed by Pres. Trump who don't have the same view of anti-trust law as Lina Khan.

[msawi11]

@pius_twelfth excuse me, that's Comrade Commissioner Lina Khan

[Scotts Miracle-Gro Sucks]

Hi I work for the government and yes I am a clown whom serves no purpose. Good day

[MoneyPig]

MSFT the company of threats. About time they break these companies up. Threatening the government?

The MSFT purchase of ATVI makes no sense more than an attack on Sony, Google and Apple platforms. I can say it a thousand times, each platform makes money because ATVI pays fees to the platform. So what's the reason to buy ATVI?

ATVI will dies after any MSFT aqusition, becuase Sony, Google and Apple will abandoned ATVI games, quietly, less marketing of ATVI franchises and more marketing of others. So it's pretty stupid.

[Pat Messner]

@MoneyPig

This could be the most cluless post on this site today!

So based on your logic everyone will abandoned popular games because they are owned by Microsoft Stuios?

[msawi11]

Dang, for the all the ESG kiss-ass that Nadella does, he can't get this across the finish line during a Democrat administration?!

[JunkBondage]

If the gummint sues to block this it will be the fourth recent deal they tried to block but failed to after trial. People who say this deal should be blocked don't understand the market, market shares, or antitrust laws in this country.

[Seriol]

Hopefully the FTC/DOJ are successful in blocking this. We need a renewed anti-trust spirit and Sherman Act resurgence in the country. Distributed, diffuse power is better long term for the nation.

[andyalz]

@Seriol 😳
Accessible to everyone... who should distribute in your opinion ?

[Caywyn]

@Seriol I disagree completely. The government should not attempt to block this because there’s no need and they won’t win a court case. This transaction doesn’t violate antitrust laws. I don’t think it’s a good policy for the government to spend tax payer dollars and tie up courts suing to block legal mergers to score political points.

[Total Returns]

@Seriol I agree we need a strong anti-trust spirit. But keeping msft from buying a gaming company ain’t what I have in mind. That’s government overreach. The govt will lose, they know it, and I fully expect it won’t ever go to court.

[Frankenstone1]

Just like with Fitbit/GOOGL, the anti business, anti American government regulators ftc and DOJ, have no legal prescident or chance even of legally stopping $MSFT and $ATVI.

[1.21 Jigawatts]

Good. They'll win. Then we can all be done with this nonsense and everyone can be wealthier.