If the US Federal Trade Commission files a lawsuit attempting to thwart the transaction, Microsoft Corp. is prepared to defend its $69 billion acquisition of gaming business Activision Blizzard Inc., a person familiar with the situation said.
The Xbox maker hasn’t discussed remedies or concessions with the FTC in an effort to get the merger authorised, according to the individual who wanted to remain anonymous since the talk was private. The person stated that the FTC staff is finishing up its inquiry and will soon issue a recommendation. The decision to file a case would thereafter be made by the FTC commissioners.
The individual, who requested anonymity to discuss internal tactics, stated that Microsoft is preparing to challenge the FTC’s decision in court if it tries to stop the investigation. Jennifer Rie, an antitrust analyst for Bloomberg Intelligence, said she wouldn’t be surprised if the FTC filed a lawsuit to try and stop the deal. However, she added, a court battle would be difficult for enforcers to win and Microsoft could win, even though it might drag on past the deal’s expiration date. Microsoft has stated that it plans to complete the deal by June 30.
The alternative for Microsoft would be to back out of the agreement if the FTC filed a complaint.
Microsoft’s greatest hope of getting the Biden administration to approve the acquisition of Activision is to persuade them to accept a settlement wherein it promises not to withhold its best-selling games from competitors.
However, these accords are not popular with Biden’s antitrust enforcers, especially after this month’s Ticketmaster scandal brought attention to a botched 2010 Justice Department settlement with Live Nation Entertainment Inc.
Although the FTC is approaching mergers aggressively, particularly in the technology and digital areas, it has not yet made clear if it intends to file a lawsuit to stop the transaction.
The blockbuster transaction, which would drastically change the video game industry and propel Microsoft to the No. 3 position in the global games market after Tencent Holdings Ltd. and Sony Group Corp., is being questioned by regulators in at least three nations, including the US.
