Microsoft Ready To Fight For Acquisition Of Gaming Company Activision Blizzard Inc.

According to a person familiar with the situation, Microsoft Corp. is prepared to defend its $69 billion acquisition of the gaming giant Activision Blizzard Inc. if the US Federal Trade Commission initiates legal action to stop the deal, claims a source with knowledge of the situation.

The Xbox maker hasn't discussed remedies or concessions with the FTC in an effort to get the acquisition authorized, according to the individual who wanted to remain anonymous since the conversation was confidential. The person stated that the FTC staff is currently finishing its investigation and will soon issue a recommendation. The vote to file a case would thereafter be made by the FTC commissioners.

The individual, who requested anonymity to disclose internal strategies, stated that Microsoft is preparing to contest the FTC's decision in court if it tries to stop the case. Jennifer Rie, an antitrust analyst, said she wouldn't be surprised if the FTC filed a lawsuit to try and stop the deal, but added that a court battle would be difficult for enforcers to win and Microsoft could win, even though it might drag on past the deal's end date. Microsoft has stated that it plans to close the deal by June 30.

The alternative for Microsoft would be to withdraw from the deal if the FTC filed a complaint. When the US government filed a lawsuit to stop Microsoft's acquisition of accounting software maker Intuit Inc. in 1995, the company responded in kind, saying it didn't want to deal with a protracted legal dispute.

Microsoft's greatest hope of getting the Biden administration to approve the acquisition of Activision Blizzard Inc,  is to persuade it to accept a settlement wherein it promises not to withhold its greatest titles from rivals.

However, these agreements are not popular with Biden's antitrust enforcers, especially after this month's Ticketmaster issue brought attention to a botched 2010 Justice Department settlement with Live Nation Entertainment Inc.

Although the FTC is approaching mergers aggressively, particularly in the technology and digital markets, it has not yet made clear if it intends to file a lawsuit to block the deal.

The FDA filed a lawsuit in July to prevent Meta Platforms Inc. from buying virtual reality fitness software. claims that the transaction may end what is known as "nascent competition" in a limited few markets.

The FTC and Microsoft both declined to respond. The FTC is probably going to fight the deal, according to Politico's article from last week.