FTC files to block Microsoft’s $69B Activision Blizzard acquisition [Updated]
Enlarge / The FTC's reported filing would be more likely to stop Microsoft's acquisition of Call of Duty-maker Activision Blizzard than its previous internally litigated lawsuit. (credit: Getty Images)
[Update, 6:30 pm ET: The FTC filed its complaint (PDF) for a temporary restraining order and preliminary injunction against Microsoft and Activision Blizzard's injunction. The complaint claims that the parties "may consummate the Proposed Acquisition at any time," despite pending actions with both the FTC and the UK antitrust authority.
The complaint specifically cites the long success of the Call of Duty franchise, the instant success of Diablo IV, and Overwatch 2 as "a successful new title," in suggesting why Microsoft's ownership of both Activision and its own gaming platforms would be problematic. A merger, the FTC writes, would be "reasonably likely to substantially lessen competition and/or tend to create a monopoly" in "high-performance consoles, multi-game content library subscription services, and cloud gaming subscription services."
Activision Blizzard CEO Bobby Kotick emailed his employees Monday, characterizing the FTC's action as "a positive development in our merger process." Moving the case to federal court "accelerates the legal process," Kotick wrote, noting that the company's "excellent legal team has been preparing for this move for more than a year." Kotick suggests the merger will "support our hundreds of millions of players," "protect American workers," increase shareholder value, and "Enables two American companies to more effectively compete against the global competitors that dominate the video game industry around the world."