FTC Is Looking to Review The Activision Blizzard Deal

The $68.7 Billion USD Activision Blizzard buyout deal by Microsoft will be reviewed by the United States Federal Trade Commission (FTC). The FTC will evaluate whether the deal will hurt competition within the video games industry. It is the responsibility of the FTC and the Justice Department to review antitrust matters.

FTC Chairperson Lina Khan will scrutinize the deal

The FTC has blocked two deals under Lina’s leadership in the past. One of which was the deal between Nvidia and Arm Ltd. The other deal that was blocked was Lockheed Martin’s acquisition of Aerojet.

According to Bloomberg’s report, the deal will take a closer look at Activision’s games and Microsoft’s hardware offerings. If the purchase could harm the competition within the gaming industry, regulators could impact the purchase.

Another Micorosoft acquisition was blocked in the past by the FTC, but it was eventually cleared. The tech giant purchased transcription company Nuance for $17 Billion and it caught the FTC's attention. After investigation, the deal was cleared by US and European officials. However, the deal is still under scrutiny by the U.K.’s Competition and Markets Authority.

Xbox head Phil Spencer revealed on Twitter last month, “Had good calls this week with leaders at Sony. I confirmed our intent to honor all existing agreements upon acquisition of Activision Blizzard and our desire to keep Call of Duty on PlayStation. Sony is an important part of our industry, and we value our relationship.”

But Spencer did not reveal any details about other IPs (Intellectual Property) in his tweet. It is unknown how Xbox wants to position itself in the future with studios like Bethesda, Blizzard Entertainment and King under its belt. If the FTC clears the deal, the buyout is expected to complete in June 2023.

AFK Gaming’s weekly newsletter this week will cover the high-profile business deal in detail. We have a special guest from the industry who will offer insights about the Activision-Blizzard acquisition. Subscribe to AFK Weekly to receive our newsletter as soon as it goes live.