It’s the soap opera of the year, and depending on how it unfolds, it could forever change the gaming industry. Microsoft acquired Activision-Blizzard for $69 billion over a year ago, but the deal has yet to be finalized.
Microsoft will head to court on June 22 to face the Federal Trade Commission (FTC) in a five-day case that will determine the future of its proposed acquisition of Activision Blizzard for $68.7 billion.
The FTC seeks an injunction to prevent Microsoft from finalizing the deal before another legal proceeding begins on August 2.
July 18, deadline for Microsoft
There is a lot at stake. Microsoft has until July 18 to try and finalize its acquisition proposal; otherwise, they will have to pay Activision Blizzard $3 billion in dissolution expenses or renegotiate new terms.
The FTC is not the only regulatory authority trying to block the deal. The UK Competition and Markets Authority (CMA) decided to block the agreement in April, and Microsoft is appealing that decision in a case set to begin in late July.
The FTC case against Microsoft begins tomorrow, June 22, and we are starting to get a clearer picture of the arguments and evidence that will be part of the legal process.
Microsoft is expected to present a multitude of emails, with one in particular standing out with the subject line: “FW: Sony’s meanness and GameSpot fanboy critics.” The outlook for the proceedings does not appear favorable.
Microsoft, Sony, Activision… all are involved
This week, Microsoft will bring its CEO, Satya Nadella, to a San Francisco court to defend against the FTC’s request for an injunction.
The head of Xbox, Phil Spencer, and other executives will also take the stand, along with PlayStation’s chief, Jim Ryan, and Activision CEO, Bobby Kotick. It is the gaming industry’s trial of the decade.
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