The Federal Trade Commission (FTC) is reportedly putting a stop to Microsoft’s $69 billion purchase of video game maker Activision Blizzard, according to multiple reports.
MICROSOFT, ACTIVISION TO APPEAL UK’S DECISION TO BLOCK $69B DEAL
Inquiries by FOX Business to the FTC and Microsoft were not immediately returned.
In April, British regulators at the Competition and Markets Authority attempted to block the purchase, saying “the only effective remedy to the substantial loss of competition is to prohibit the merger of what would be the largest deal in tech history.”
In response, Microsoft CEO Brad Smith tweeted that the regulator’s decision rejects a pragmatic path to address competition concerns while discouraging technology innovation and investment in the United Kingdom.
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Both Microsoft and Activision appealed the British regulator’s decision, despite facing opposition to the all-cash deal from contemporaries like Sony and regulators in the U.S. and Europe who are concerned the consolidation would give Microsoft control of the cloud gaming industry and popular game franchises like Call of Duty, World of Warcraft and Candy Crush.
In February, Activision CEO Bobby Kotick sounded off on regulators during an appearance on “The Claman Countdown.”
“I think what we’re experiencing right now are regulators who have very little experience with our industry,” he told host Liz Claman. “There’s probably a lot of consolidation that could happen over time, but it’s an extremely fragmented industry, and today the dominant players are Japanese and Chinese companies.”
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Cloud gaming enables the streaming of games to tablets, phones and other devices, freeing gamers from buying expensive consoles and gaming computers.
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