FTC likely the last barrier in the Microsoft Activision deal
Share this article...
WePC is reader-supported. When you buy through links on our site, we may earn an affiliate commission. Prices subject to change. Learn more
If Microsoft can convince the Federal Trade Commission (FTC) to approve its merger with Activision Blizzard King (ABK), there’s very little that can stop the tech giant from the buyout.
To be clear, the deal needs both the US FTC and UK Competition and Markets Authority (CMA) to agree, but in a certain sense, they only need the FTC to agree.
While it sounds strange, the important thing to remember is that the UK is one approval away from being the odd one out. If only one commission says no, it becomes easy to make them look like the ‘bad guys’ and say they’re just inhibiting good business.
No commission wants to look like a tyrant.
Will the US FTC approve Microsoft’s acquisition of Activision Blizzard King?
The US FTC may have been seemingly against the buyout before, but now that time has passed, they may not be so willing to block it. After seeing the European Commission (EC) approve the deal, it leaves more room for the FTC to approve it as well. The push to delay a decision many months ago really helped Microsoft.
The US FTC pushed their decision date forward, giving the UK CMA and EC time to give theirs. The CMA said no while the EC said yes.
Immediately following the EC’s decision, the CMA sent out a response against the EC’s decision. Possibly because they are passionate about their stance, but it demonstrates a lack of solidarity in opposing Microsoft’s bid. The CMA knows they’ll look worse if they’re the only ones who think Microsoft shouldn’t be able to buy ABK.
For some, it may show how dedicated the CMA is to keeping business practices fair, but it’s very easy for Microsoft to spin this another way. Microsoft could easily imply that the CMA favors Sony too much or that they just want more out of the deal than the other commissions do. They could also paint them in a negative light, saying that they just want more control.
Being the only one that says no is brave, but it opens the door to negative criticism of the CMA. It’s a bad position to be in and may likely only be held for a short period of time if the FTC approves the buyout.
So it looks like August 2, 2023, will play a major role in determining the outcome.
