The FTC Looking At Microsoft’s ABK Deal

Following the $70-billion deal announced by Microsoft to acquire Activision-Blizzard|King, there have been many questions. Not least of which is what is next after this. However, there is one that is far more important when it comes to the wider scope of billion-dollar companies buying up other billion-dollar companies to expand their portfolio: Should it be done? At the time of writing, the UK governing body (CMA) on such acquisitions has not yet decided whether to put its hat in the ring. Nonetheless, the US Federal Trade Commission (FTC) is said to be taking a closer look at the deal.

According to Bloomberg‘s David McLaughlin (behind a paywall), the FTC is looking to review the deal, which will bring not only one large franchise into the fold of Xbox but several. To call the acquisition, providing it goes through, a tectonic shift in the landscape would not be an understatement. Activision Blizzard|King is The foremost leader in MMOs and PC-centric titles, alongside numerous multiplatform titles with a heavy focus on multiplayer. They are the King (pun intended) of mobile titles, and two of Sony’s biggest PS1 mascots, as well. It is easy to see why some assume it as a shot across the bow of console gaming.

While the FTC is not introverted when looking at such deals, there is the question of past arrangements allowed by the trade commission. It was December 2017 when it was announced that The Walt Disney Company intended to pay $52-billion in stocks for 21st Century Fox, a deal that would later be amended to $71.3-billion amid a war with Comcast. While there were concerns raised by critics, including former anti-trust lawyer and policy director at the FTC David Balto, the acquisition was agreed upon in 2019. NVIDIA’s attempt to acquire Arm for $40-billion seems to have hit an anti-trust-based dead end.

Microsoft’s last major acquisition for its gaming label Xbox was ZeniMax Media, the company behind recent Fallout titles, Dishonored, Doom, The Evil Within, and Wolfenstein. It was not long after the EU’s anti-trust board approved the acquisition that the deal for a total of $8.1-billion was completed by Microsoft. Of course, with a year to go until this deal between Microsoft and Activision-Blizzard|King is said to be finalized, there is no word either way for which direction this could go.