Microsoft’s Plan to Acquire Activision Blizzard in 2022- Why The FTC Is Vehemently Against It

Microsoft has a long history of acquisitions, dating back to 1987.

• In 1997, Microsoft purchased for $500 million.

• Between 2005 and 2008, Microsoft acquired more than ten businesses annually.

• In 2021, Microsoft bought Bethesda for $7.5 billion.

• In 2014, Microsoft purchased Mojang (the maker of Minecraft) for $2.5 billion.

Quick Summary

On January 2022, Microsoft announced its plans to buy Activision Blizzard in what is famed to be the biggest deal in video game history at $69 billion. The Federal Trade Commission has filed a lawsuit against this move claiming that it will stifle Xbox competitors as the company would obtain ownership of major video game properties including some of the most well-known games in the world such as Call of Duty. However, Microsoft claims that the transaction will improve competition and benefits customers. They point to their past with Bethesda as an example, stating that they have kept their promise of bringing games to all platforms despite concerns from The FTC. Only time will tell if this acquisition is successful or obstacles could prevent it from being finalized.

Microsoft has been making acquisitions since the late 1980s, but its recent acquisition plans have been bolder and more ambitious than ever before. In 2020, Microsoft announced a $7.5 billion plan to acquire ZeniMax Media, the parent company of gaming giant Bethesda Softworks. Now, Microsoft is planning an even bigger deal – a $10 billion takeover of Activision Blizzard. In this blog post, we will explore the details of this deal and what it could mean for both companies.

Microsoft’s History with Acquisitions

Microsoft has been making acquisitions since 1987 when they bought Forethought Inc., a software company that developed PowerPoint. Since then, Microsoft has acquired over 200 companies including well-known names like Skype (2011), LinkedIn (2016), and GitHub (2018). Between 2005 and 2008, Microsoft went on a buying spree with around 40 acquisitions in those three years alone. Some of these notable acquisitions include Mojang AB (the creators of Minecraft) and Nokia’s mobile phone business.

Microsoft’s Plan to Acquire Activision Blizzard in 2022

In 2020, Microsoft announced its intention to acquire Activision Blizzard for $10 billion dollars. If approved by regulators, this would be one of the biggest deals in video game industry history. The deal would give Microsoft exclusive rights to some of Activision Blizzard’s most popular franchises including Call of Duty, World of Warcraft, Diablo and Overwatch. It would also give them access to some important technology assets such as the BattleNet platform which powers many popular titles.

The FTC Lawsuit Against the Deal

However, not everyone is happy about the proposed acquisition. The US Federal Trade Commission has filed a lawsuit against the deal claiming that it will create an “unlawful monopoly” in the gaming industry by giving Microsoft too much control over certain key products and services related to gaming. They argue that such a large consolidation could lead to higher prices for consumers and less innovation from smaller competitors due to a lack of competition in the marketplace.

Microsoft’s Response To The Lawsuit

Microsoft has responded to the FTC’s claims stating that they do not believe their acquisition would stifle competition or raise prices for consumers as they are already competing aggressively with other major game publishers like EA and Ubisoft in terms of pricing and innovation. They claim that any potential antitrust issues can be addressed through measures such as open-source licensing or divestitures if necessary.

Will This Acquisition Be Successful?

Only time will tell if this acquisition will be successful or if it will be blocked by regulators due to antitrust concerns. It is clear that Microsoft is looking to expand its portfolio into new areas such as gaming with this move and that there are potential benefits for both companies involved if it goes through without any major issues or delays. However, only time will tell how things play out between now and 2022 when this deal is expected to close officially.

Microsoft’s plan to acquire Activision Blizzard marks another ambitious move by one of tech’s biggest giants as they seek further growth beyond their traditional markets into new areas such as gaming with this move. With regulators still weighing up their decision on whether or not this deal should be allowed to proceed, only time will tell how things play out between now and 2022 when it is expected close officially. Whatever happens, one thing is sure: it will have huge implications for both companies involved as well as for consumers who rely on these services. Stay tuned!


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