The Activision Blizzard deal with Microsoft is facing its toughest challenge yet with the recently reported lawsuit from the FTC. But despite this hurdle, which Microsoft and others most assuredly saw coming, Activision Blizzard’s CEO Bobby Kotick isn’t wavering. In an internal note sent out to employees this morning following the lawsuit, Kotick says he is “confident” the deal will still close.
Speaking to employees about the current state of the acquisition, Kotick additionally notes that the allegations about the deal being anticompetitive “don’t align with the facts” and that “we believe we’ll win this challenge.” Kotick further bolsters his statement by echoing the sentiments of other industry leaders that this deal is ultimately good for competition.
Though this isn’t a sentiment that everyone shares. The proposed Microsoft Activision Blizzard deal has drawn the ire of not only the FTC but EU regulators as well. An ironic turn of events given that Microsoft has already been down this road when it went through an investigation following its proposed deal to buy ZeniMax Media, owner of Bethesda, who makes popular games in the Fallout, Elder Scrolls, and DOOM franchises.
Still, Kotick’s words to employees have some merit. He feels confident the deal will still close. And that’s not entirely out of the question. Much like the Activision Blizzard acquisition still has to be approved, the FTC lawsuit still has to be successful. And there’s a chance it may not be.
The FTC lawsuit against Microsoft for the Activision Blizzard deal wasn’t filed in federal court
A big deal which is likely important to the overall outcome of this case, is that the FTC didn’t file its lawsuit in federal court. The suit was filed in its own administrative court. Which could signify there is still a good chance the deal closes. This was a point highlighted by Axios, and covered in our earlier report about the lawsuit.
That being said, the lawsuit can go either way. With the case now being set in an adjudicative proceeding, Microsoft has two options. It can settle with the FTC, or it can contest the charges. The latter of which it seems likely to do.
If that happens, the case then moves into a trial-type proceeding before an administrative law judge. Microsoft then continues to present its case and things proceed accordingly. At the end of the day, don’t expect this case to be finished anytime soon. This is likely going to take a while. You can see Kotick’s full statement here.
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