Microsoft Is Ready to Fight For Its $69 Billion Activision Deal
Microsoft Corp. is ready to fight for its $69 billion acquisition of gaming company Activision Blizzard Inc. if the US Federal Trade Commission files a lawsuit seeking to block the deal, according to a person familiar with the matter.
The Xbox maker hasn't had conversations with the FTC about remedies or concessions aimed at getting the deal approved, said the person, who asked not to be identified discussing a confidential matter. FTC staff is wrapping up its investigation and is expected to make a recommendation soon, the person added. The FTC commissioners would then vote on whether to file a case.
In the event the FTC tries to block the case, Microsoft is gearing up to contest that decision in court, said the person, who asked not to be identified speaking about internal strategy. Bloomberg Intelligence antitrust analyst Jennifer Rie said it wouldn't surprise her if the FTC files a lawsuit seeking to block the deal, but noted that a court fight would be hard for enforcers to win and Microsoft could prevail -- though a legal battle could stretch beyond the deal's end date. Microsoft has said it expects to close the transaction by June 30.
Microsoft's other option would be to abandon the deal in the face of an FTC challenge. That's what the company did in 1995 when the US government sued to block its acquisition of accounting software maker Intuit Inc., with Microsoft saying it didn't want to contend with a long legal battle.
Microsoft's best chance to win approval to buy Activision is to persuade the Biden administration to accept a settlement in which it pledges it won't withhold its popular titles from rivals.
But Biden's antitrust enforcers aren't fond of such agreements -- especially after this month's
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