Microsoft’s bid to acquire Activision Blizzard is on thin ice. Antitrust regulators in several regions have been reviewing the deal all year, and several have recently expressed concern that the acquisition could significantly reduce competition within the video game industry. With the European Union’s watchdogs particularly wary, Microsoft appears willing to do whatever it takes to get the deal through, even if it means making concessions to Sony.
The EU opened a further investigation into the bid in early November following a sharp spike in concerns over Activision’s most successful franchises, particularly Call of Duty. Sony, Microsoft’s biggest gaming competitor, has repeatedly noted in no uncertain terms that Microsoft’s acquisition of Activision could mean a rapid loss of vital content for PlayStation gamers. Not only would Microsoft’s acquisition of Activision make Microsoft the world’s third-largest games company, but from Sony’s perspective, Call of Duty’s sudden exclusivity could push former PlayStation enthusiasts to PC or Xbox. .
Microsoft has already tried to assuage these concerns in two very different ways. At first, his tactic was to assure Sony (and the rest of the world) that its console compatibility agreements involving Call of Duty and other major Activision titles would remain in place. past their contractual deadlines. Then he changed tack, telling Sony and antitrust regulators that Activision had no “must-have” titles. (Read: “So stop stressing about it, okay?”)
These strategies do not appear to have had the effect Microsoft intended. According to a new report from Reuters, the EU is expected to release an official list of competition concerns (known as a “statement of objection”) regarding the deal in January. Microsoft, clearly keen to get ahead of whatever the EU has in store, is reportedly preparing to offer Sony a 10-year Call of Duty license to sweeten the deal.
The possible 10-year deal is a little ironic given Microsoft’s previous insistence that it would keep major Activision titles available on PlayStation regardless, but of course it’s always better to get that guy. promises on paper. However, even if Microsoft formally submits such an offer, there is no guarantee that it will be accepted by both Sony and the necessary authorities. If so, legal experts say the license could speed up the review process and allay concerns raised in January.
That doesn’t mean Microsoft would be allowed to take off, though. Three sources told Politico last week that the U.S. Federal Trade Commission (FTC) is likely to challenge the $69 billion deal via legal action. Although nothing has been filed yet, an FTC lawsuit could spell the end of Microsoft’s bid, which aims to complete its acquisition of Activision by July 2023.
Now read: