Google, Nvidia have concerns about Microsoft's deal to buy Activision Blizzard2023-01-13 17:53 by Daniela
Microsoft were hoping to complete their takeover of Activision Blizzard by the end of their financial year in June. However, tech giants Google and Nvidia have reportedly "expressed concerns" to the United States' Federal Trade Commission (FTC) over Microsoft's acquisition of Activision Blizzard. According to them, the deal could give Microsoft an unfair advantage in the market for cloud, subscription, and mobile gaming.
Microsoft is trying to buy Activision Blizzard, in part, to help get a foothold in the mobile games space. Microsoft doesn't have much of a presence in the mobile game space currently, but if its deal for Activision Blizzard goes through, it would take ownership of Candy Crush, Call of Duty Mobile, Diablo Immortal, and every other Activision Blizzard mobile game.
Google and Nvidia join Sony in raising concerns about Microsoft's attempt to buy Activision Blizzard. Sony's PlayStation division competes with Microsoft's Xbox, and specifically, Sony has raised concerns about the possibility of Activision's Call of Duty series becoming exclusive to Xbox. Microsoft has said this will not happen, and has offered Sony a 10-year deal for Call of Duty.
Microsoft needs to find favor of the FTC before its $68.7 billion dollar purchase of Activision Blizzard can go ahead. Even once the lawsuit clears, MS would still need to seek approval from other global regulators, including the European Commission and the UK Market Authority. Furthermore, regardless of the result of the trial, both parties have the option to appeal the judge's decision, seemingly guaranteeing this debacle will run into the tail-end of the year and perhaps even into 2024.
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