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FTC’s probe of Microsoft’s Activision acquisition will reportedly focus on consumer data, labour market (VGC)

kingfey

Banned

The Federal Trade Commission (FTC) investigation into Microsoft‘s acquisition of Activision Blizzard is likely to focus on consumer data that both companies hold, and the potential impact on the labour market, according to a new report.

According to The Information (paywalled, transcribed by Seeking Alpha), FTC chair Lina Khan will “examine the deal with an eye to the combined companies’ access to consumer data, the game developer labour market and the deal’s impact on those workers who have accused Activision of discrimination and a hostile workplace”.

The Information also reports that the FTC is looking into the potential impact on a competitive metaverse following the acquisition.

Last month the FTC asked Microsoft and Activision Blizzard for additional information as it continues to review the proposed acquisition deal.

According to a proxy filing published by Activision Blizzard, both it and Microsoft “each received a request for additional information and documentary material […] from the FTC in connection with the FTC’s review of the transaction.”

The request isn’t necessarily an indication that there’s an issue with the proposed acquisition, or that the FTC is shaping up to try to block the deal in any way. Rather, it’s an expected step when reviewing a deal this large.

If it’s successfully completed, the Activision Blizzard acquisition will mean that Xbox will gain exclusive ownership of some of the industry’s biggest franchises including Call of Duty, Warcraft, Overwatch, Crash Bandicoot, Guitar Hero and more.

The deal is expected to close in Microsoft’s fiscal year 2023, but this is subject to closing conditions and completion of regulatory review.

Competition law seeks to maintain market competition by regulating anti-competitive conduct by companies. In the case of mergers and acquisitions, regulators can prohibit deals that are considered to threaten market competition or suggest remedies such as an obligation to divest part of the new business.

Microsoft reportedly plans to keep making “some” Activision Blizzard games for PlayStation consoles following the takeover, and Xbox head Phil Spencer has claimed that “it’s not our intent to pull communities away from that platform”.

Microsoft president Brad Smith later reiterated that the acquisition would not prevent future Activision Blizzard games from being released on PlayStation consoles, and that it wanted to release more franchises, including Call of Duty, on Switch.
 

adamsapple

Gold Member
According to The Information (paywalled, transcribed by Seeking Alpha), FTC chair Lina Khan will “examine the deal with an eye to the combined companies’ access to consumer data, the game developer labour market and the deal’s impact on those workers who have accused Activision of discrimination and a hostile workplace”.

The line of questioning Warren raised about concern for the state of employees is all kinds of weird lol.

MS is routinely ranked in the top best places to work. Activision employees would benefit massively by going under the MS umbrella and hopefully new Acti/Bliz management.

And of course, fuck bobby kotick.
 
It feels so weird.

Even combined MS will be still be behind others in market share for both console or games.

The deal is easy pass.
Not sure if this is sarcasm or not but it goes to show all the nonsense that’s been spewing over since this deal was announced was just that. Clearly there won’t be a shortage of game developers. Also they’re aren’t even looking at the aspects most where crying for here this will be closed by end of summer.
 

ethomaz

Banned
Not sure if this is sarcasm or not but it goes to show all the nonsense that’s been spewing over since this deal was announced was just that. Clearly there won’t be a shortage of game developers. Also they’re aren’t even looking at the aspects most where crying for here this will be closed by end of summer.
Sarcasm for what exactly?
The news about checking something that is not even remotely true is weird.
Even combined MS is far from being near to have a market share domination… as game publisher it will be luck to be 3rd… needs to do some maths.

The deal is easy pass.
 
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Mr Moose

Member
Not sure if this is sarcasm or not but it goes to show all the nonsense that’s been spewing over since this deal was announced was just that. Clearly there won’t be a shortage of game developers. Also they’re aren’t even looking at the aspects most where crying for here this will be closed by end of summer.
But Nadella suggested that Microsoft should not need to make any formal concessions to win regulatory approval for the deal, because it would still be too small to have an anti-competitive impact.

“At the end of the day, all the analysis here has to be done through a lens of: ‘what’s the category we’re talking about, and market structure?’” he said. “Even post this acquisition, we will be number three with sort of low-teens share [of the video games market] . . . We will be a bit player in what will be a highly fragmented place.”
 

Dick Jones

Gold Member
Maybe the FTC are worried there could be a monopoly on studios not having sexual harassment in the US. Worrying times /s
 
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Zeroing

Gold Member
I like the word probe, should be used more often!

Now seriously this is a deal that keeps on giving… headlines… and it wasn’t even approved or revoked.
 
when "muh video games" overrides common sense. This is the biggest acquisition of any media company outside of 21st century fox, ever. 70 billion dollar purchase by a 2 trillion dollar company (who just spent over 7 billion the previous year in the same market) should be picked to the bone by the government regardless of what the purchase is or where the company CURRENTLY sits in that specific marketplace.
 
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mckmas8808

Mckmaster uses MasterCard to buy Slave drives
when "muh video games" overrides common sense. This is the biggest acquisition of any media company outside of 21st century fox, ever. 70 billion dollar purchase by a 2 trillion dollar company (who just spent over 7 billion the previous year in the same market) should be picked to the bone by the government regardless of what the purchase is or where the company CURRENTLY sits in that specific marketplace.

Super true comment here.
 

The_Mike

Member
Microsoft reportedly plans to keep making “some” Activision Blizzard games for PlayStation consoles following the takeover, and Xbox head Phil Spencer has claimed that “it’s not our intent to pull communities away from that platform
Shocked Patrick Stewart GIF

I was under the impression from here that all their games would still be multi platform.

I'm still calling main line cod will be exclusive to pc and Xbox.
 
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