Why couldn t Microsoft buy Activision?

The FTC's argument against Microsoft is that by acquiring Activision Blizzard it would “substantially lessen competition” in the “relevant market,” per antitrust law as laid out in the Clayton Act.

Why Microsoft can t buy Activision?

The European Commission has objected to Microsoft's buyout of Activision Blizzard, setting another roadblock in the purchase. Following a lawsuit by gamers over monopolizing the gaming market, Microsoft has hit another roadblock in its attempt to buy Activision Blizzard (ABK) for nearly $70 billion.

Why Sony doesn t want Microsoft to buy Activision?

Microsoft and Sony have been at odds over the former's purchase of Call of Duty maker Activision Blizzard. Sony is concerned that the Windows maker might make the game exclusive to Xbox but those claims have fallen flat after Microsoft announced multi-year deals with Nintendo and Nvidia.

Is Microsoft buying Activision illegal?

Microsoft is headed for a battle with the Federal Trade Commission over whether the U.S. will block the tech giant's planned takeover of video game company Activision Blizzard. Microsoft on Thursday filed a formal response to the FTC's claims that the $68.7 billion deal is an illegal acquisition that should be stopped.

What happens if Microsoft buys Activision?

Activision Blizzard own the Call of Duty franchise, one of the biggest in gaming history. If Microsoft's acquisition deal closes, they will own the Call of Duty series, and be able to do whatever they want with it on their Xbox systems going forward. Microsoft could have bought other companies, but it already did.

What Will Microsoft Do If It Can't Buy Activision?

Did the government stop Microsoft from buying Activision?

US agency moves to block landmark merger of Microsoft and Activision Blizzard. The US Federal Trade Commission (FTC) has moved to block Microsoft's takeover of video game company Activision Blizzard, citing concerns that the deal would thwart competition by denying rivals access to popular gaming content.

Why is Microsoft buying Activision a big deal?

Buying Activision will give Microsoft ownership of many of the world's biggest games: not just Call of Duty, but others, including mobile behemoths like Candy Crush. All of those will be part of Microsoft and can be used to boost the offering of the Xbox.

Why was Microsoft blocked from buying Blizzard?

The FTC deems that the Xbox maker's acquisition of Activision Blizzard would harm competition with rival game consoles and negatively impact consumers.

Why did US government sue Microsoft?

Summary. In the 1990s, the U.S. government sued Microsoft for trying to monopolize the personal computer market. The charges brought against the company involved sections of the Sherman Antitrust Act, which included laws designed by governments in order to ensure fair competition in the market.

Will Microsoft Activision be approved?

Microsoft's proposed acquisition of Activision Blizzard is likely to be approved by EU regulators, Reuters reports. The software giant struck licensing deals with Nintendo and Nvidia recently, and Reuters says these deals are likely to satisfy lawmakers in Europe to help Microsoft clear its $68.7 billion deal.

How long is Sony's deal with Activision?

For years now, Sony has paid Activision for a Call of Duty exclusivity deal that sees PlayStation owners get special treatment in regards to the popular shooter series. That deal ends in 2024, according to Microsoft president Brad Smith.

Who is suing Microsoft?

Microsoft Corp was hit on Tuesday in US court with a private consumer lawsuit claiming the technology company's $69 billion bid to purchase “Call of Duty” maker Activision Blizzard Inc will unlawfully squelch competition in the video game industry.

Why is Activision suing Microsoft?

The lawsuit filed in a US federal court says the $69bn (£56bn) deal by the Xbox console maker to purchase its rival will "create a monopoly in the video game industry". The complaint comes two weeks after US regulators filed a case with an administrative judge to block the deal.

Does Microsoft own Blizzard yet?

August 24, 2022 - Xbox Launches Website Outlining Benefits of the Acquisition. To spell out the benefits of Xbox's acquisition of Activision Blizzard to the public, Microsoft launched a website that highlighted its “vision for gaming,” and the positives of what could become the biggest deal in video game history.

Has anyone ever sued Microsoft?

Microsoft has been accused of deceiving consumers by concealing the high failure rate of its Xbox 360 game console. A woman from California sued Microsoft in October 2008 in Superior Court in Sacramento County, stating that the company violated multiple state consumer-protection and unfair-competition laws.

Is Microsoft still a monopoly?

Microsoft is the world's leading operating system producer and holds a large monopoly on a worldwide scale. Other products that they own include operating systems for mobile phones, gaming console (Xbox), and software development tools.

Who is blocking the Microsoft Activision deal?

But things got really interesting in early December of last year, when the FTC sued to block Microsoft from acquiring Activision Blizzard, with preliminary hearings set to begin this August.

Who is against the Microsoft Activision deal?

The UK's Competition and Markets Authority (CMA) has said it is opposed to Microsoft's planned purchase of games developer Activision Blizzard. The CMA said it had provisionally concluded it would result in higher prices, fewer choices and less innovation.

How much will Microsoft pay for Activision?

Here's what investors need to know. It's been over a year since Microsoft (MSFT -0.94%) announced it would acquire Activision Blizzard (ATVI 0.07%) in an all-cash deal valued at $68.7 billion, yet the deal remains uncertain. Activision shares are trading about 24% below its acquisition price of $95 per share.

Why did Activision sell to Xbox?

“Its vision for the transaction is simple: Xbox wants to grow its presence in mobile gaming, and three-quarters of Activision's gamers and more than a third of its revenues come from mobile offerings,” according to Microsoft.

Who owned Activision before Microsoft?

The company was founded as Activision, Inc. on October 1, 1979 in Sunnyvale, California, by former Atari game developers upset at their treatment by Atari in order to develop their own games for the popular Atari 2600 home video game console.

Is Microsoft confident about Activision deal?

Xbox CEO Phil Spencer says he's confident its Activision-Blizzard acquisition deal will receive final approval from global regulatory bodies. Xbox head Phil Spencer remains confident that Microsoft's Acquisition of Activision-Blizzard will go through.

Why is FTC suing Activision?

The agency alleges that the deal would enable Microsoft to suppress competitors to its Xbox gaming consoles and its rapidly growing subscription and cloud-gaming business. An evidentiary hearing is scheduled for Aug.

Did Microsoft overpay for Activision?

Most people think that Microsoft overpaid with the $70 billion price tag on Activision Blizzard. Not necessarily. People tend to look at this as a consolidation deal, where Microsoft buying a company at a decline, which is not. The important point of the deal was to facilitate Category Acceleration.