Microsoft President Smith going to Washington to try to save Activision deal

Rich Polk

Microsoft (NASDAQ:MSFT) President Brad Smith is expected to go to Washington D.C. to meet with the Federal Trade Commission in attempt to save the software giant's $69 billion acquisition of videogame publisher Activision (NASDAQ:ATVI).

The last ditch effort comes after Smith penned a Wall Street Journal op-ed piece on Monday where he confirmed that Microsoft (MSFT) was offering rival Sony (SONY) a 10-year guarantee for same-day Call of Duty release in attempt to save the mega videogame deal.

Smith is on track to meet with three Democratic members of the FTC on Wednesday to try to persuade them not to block the deal over antitrust concerns, according to a NY Post report.

Microsoft's (MSFT) Xbox "remains in third place in console gaming, stuck behind Sony's dominant PlayStation and the Nintendo Switch (OTCPK:NTDOY)," and Microsoft has "no meaningful presence in the mobile game industry," Smith said in the op-ed piece.

The FTC has a closed-door meeting scheduled for Thursday where the agency will discuss the transaction and there's an outside chance they may vote on the videogame deal, according to the NYP.

The latest Post report comes after the publication on Sunday said that at least one Democrat on the four-member Commission is said to be possibly leaning in favor of the transaction.

Earlier Tuesday Edward Jones upgraded Activision (ATVI), saying its a buy with or without the Microsoft (MSFT) deal.

Comments

[igort]

Donation ....donation.... donation and your deal will be done .....

[fshoutofwtr]

How many of you guys even play video games?

[RSI Raistlin]

@fshoutofwtr this guy....though Im a Fallout/Warframe player. Dont do much CoD

[Danimalc]

@fshoutofwtr I used to a long time ago. Oregon trail, final fantasy 1,2, and 3 were my go tos. My son just showed me they’re releasing Oregon trail again on his Nintendo handheld (forgot what it’s called) lol.

[Hazy Shades]

@fshoutofwtr Ha, I still play the original Mario Kart on Super Nintendo with my 11 yr ole everyday ! We’ve yet to upgrade!

[MoneyPig]

He is going to offer bribes. That one can only do in person. And the Deomicratic Party is extremely corrupt. He might get the deal done with some take out Chinese. Low level politicians come cheap.

[Jsnsiz]

@MoneyPig you are delusional if you think only one party is corrupt.

[pro8]

@MoneyPig Apt moniker and username for a Republican... why didn't you just use POS...

[Ol' Hickory]

Sort of a cute headline, but I bet most readers don't get it.

[pro8]

@Ol’ Hickory Movie Jimmy Stewart I doubt the author did it on purpose though....

[Frankenstone1]

They have the votes they need with the one Dem flipping, deal could be approved by FTC this week...

[MoneyPig]

@Frankenstone1

If MSFT is successful, Call of Duty will only be played on NOKIA phones. A good horror movie would be about a kid finding a NOKIA phone and getting Skype calls from graves.

This is a sentence of death for Warcraft, Call of Duty and Candy Crush. You need a Surface Tablet? You can have mine.

[dmau3]

I don't think it has come to a 'last ditch effort' as the writer of this article portrays.

[GR Value]

Sorry I don't want anymore monopoly growth. Tell MSFT to donate it's extra money to charity not corner more markets. Just being serious here. At some point enough is enough. Guy is even trying to corner farmland.

[Wish I had more]

@GR Value or increase the dividend, 1.09% is pathetic

[purrpullberra]

@GR Value "corner more markets"... by moving up to number TH R E E in gaming worldwide?
That's a pretty lame definition of cornering a market 🙄

[Caywyn]

@GR Value Bill gates doesn’t have much of anything to do with Microsoft any more, so you farmland comment is irrelevant.

As far as enough is enough goes, you must not be a shareholder in any company, because if you were and the board of directors in that company said “nah, we’re not going to try to grow, enough is enough” you’d lose your mind.

As far as Corning markets, they’re hardly doing that in video games, which is why even if the government sues to block this deal they will lose. Should really look up some information on antitrust laws and what position this would put Microsoft in if allowed to purchase.

[MadisonAv]

Block it already. Megamergers don't do society any good. Don't let FANGM get EVEN bigger through M&A. If they want to grow, they can do so organically.

[Caywyn]

@MadisonAv The law isn’t on their side. Suing to block this merger will result in the DOJ losing in court and further diminish the threat of suing to block mergers. If you really want to see consolidation stopped, reducing the threat of the DOJ’s lawsuits being successful isn’t the way to do it.

[JunkBondage]

One way or another this deal will get done. Either the overzealous regulators will realize its best to choose their battles carefully, and this is one to avoid, or they’ll show their stupidity and sue to block, only to lose in court.

[ilikebiscuits]

@JunkBondage I wish regulators and their political bosses were as rational as that, but I'm not overly confident when political grandstanding is an option.

[Danimalc]

@JunkBondage 100% agree

[mike ekim]

"mr smith goes to washington" ;)

[Mr. Gumbo]

@mike ekim lol!