Microsoft’s proposed acquisition ofActivision Blizzardappears to have hit yet another significant roadblock. The Federal Trade Commission is already suing to block the merger from going ahead, but to make matters worse for Microsoft, it is now believed the FTC has filed for an injunction that would block the deal before its July 18 deadline.
That’s according to a new report fromCNBC. A source close to the situation has revealed the latest development, in what has become a longer and more difficult journey than all parties involved likely envisioned. This comes afterplans for the almost-$70 billion merger were revealed back at the start of 2022, meaning it’s going to be well over 18 months before any of this is sorted.
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It being sorted may well mean the deal isn’t allowed to be exacted at all, as this latest move from the FTC is just the latest stumbling block for Microsoft andActivision. The FTC’s initial move to scupper the merger is still in motion. However, the case won’t be presented to the FTC’s internal judge until August, after the aforementioned deadline has passed.
Even if the first judge blocks the acquisition from going through, Microsoft can, and almost definitely will should the situation call for it, appeal the decision. That will tack even more months onto what has already been a lengthy process with no end in sight. The FTC seemingly filing for an injunction before that process has reached its conclusion will only make Microsoft and Activision’s job even more difficult.
News that the FTC is attempting to further block the deal comes afterthe UK’s CMA went one step further and outright prevented the acquisition from going through. Citing a fear thatXbox will have too much of a stranglehold over the cloud gaming marketshould the deal be allowed to go through, Microsoft is currently appealing the decision and may even have preliminary plans in place so it canacquire Activision Blizzard without needing the UK to give it the okay.
It hasn’t all been bad news for the merger.The European Trade Commission has given it the go-ahead, something that seemed increasingly unlikely after the CMA decided to block it.Xboxmade a number of pledges regarding cloud gaming to assure the EU it won’t stifle competition in cloud gaming, and the commission has since commented on the fears aboutCall of Duty, citing that it seesno reason why PlayStation should be worried about its rival platform owning the popular series.
As if navigating all of this wasn’t hard enough for Microsoft, Activision Blizzard CEO Bobby Kotick caused entirely different issues last month whenhe denied there had been any issues with harassmentunder his watch. Investigators followed up on those comments by confirmingthere were 29 cases of harassment in the studio in 2022 alone.
