Activision: If Necessary, We Will “Fight” for the Xbox and Microsoft Merger
Politico published a vague and somewhat clickbaity story yesterday that claimed four sources from the FTC were raising concerns about the possibility of the U.S. regulator trying to block the deal between Microsoft Corporation and Activision. Microsoft wants to spend $69 billion to acquire Call of Duty, Candy Crush and Warcraft makers under its umbrella. This is in hopes of strengthening Xbox Game Pass against Apple and Google’s mobile gaming duopoly. Sony and its PlayStation division have reacted strongly to the deal despite Microsoft guaranteeing that Call of Duty will continue on PlayStation “as much as a PlayStation is around.”
Some observers, such as industry analyst Michael Pachter believe that the FTC’s case against this deal is an attempt by Microsoft to get concessions in writing. This would be a bad move for the FTC. There is no precedent for this type of blocker, and the industry is among the most competitive and vibrant, with the exception of Apple and Google’s grip on mobile app stores (a monopoly that Pachter should investigate).
