Microsoft Corp’s pursuit of video game giant Activision Blizzard could be about to face another hurdle.
Politico reported that “according to three people with knowledge of the matter,” the Federal Trade Commission (FTC) is “likely to file an antitrust lawsuit to block the proposed $69 billion takeover".
The FTC have made no official announcement yet, and the Politico report said “a lawsuit challenging the deal is not guaranteed".
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But steps are being made to prepare one, with “much of the heavy lifting” having already been done and it’s said that “if the agency does move ahead with a case, it could come as soon as next month".
Any move by the FTC would follow similar actions already underway in Europe where the European Union and the UK’s Competition and Markets Authority (CMA) are both probing the proposed acquisition.
The CMA warned that the link-up could damage the industry if Microsoft refused to give rivals access to Activision's best-selling games.
The deal has also drawn criticism from Sony, maker of the Playstation console which is pleading with regulators to block the deal, saying Microsoft controlling Activision Blizzard, and particularly the Call of Duty franchise, will kill off competition in the games market.
The European Commission is set to make its decision by March, 2023 but that deadline could prove meaningless should the FTC decide to launch its action.
Contact the author at jeremy@proactiveinvestors.com