Microsoft’s $69B Activision Blizzard deal will reportedly clear EU hurdle

SIMONE DEL ROSARIO: A BIG UPDATE IN THE MUCH CONTESTED DEAL BETWEEN MICROSOFT AND GAMING GIANT ACTIVISION BLIZZARD. 

E-U REGULATORS ARE SET TO GREENLIGHT THE $69 BILLION DOLLAR ACQUISITION, ACCORDING TO REUTERS SOURCES, THOUGH THEY HAVE UNTIL APRIL 25TH TO ANNOUNCE THE OFFICIAL DECISION.

THE DEAL’S BEEN IN LIMBO SINCE MICROSOFT MADE THE BID MORE THAN A YEAR AGO, CHALLENGED BY ANTITRUST REGULATORS IN THE US, EU AND UK.

ACTIVISION BLIZZARD, HOME OF CALL OF DUTY, WARCRAFT AND CANDY CRUSH, WOULD BE MICROSOFT’S BIGGEST TAKEOVER TO DATE.

SONY IS THE BIGGEST CHALLENGER IN THE PRIVATE SECTOR. THEY’VE ARGUED MICROSOFT’S ABILITY TO MAKE CALL OF DUTY AN EXCLUSIVE XBOX GAME WOULD DAMAGE SONY’S BUSINESS.

TO ALLAY THOSE CONCERNS, MICROSOFT HAS ALREADY OFFERED LONG-TERM AGREEMENTS TO KEEP CALL OF DUTY ON OTHER PLATFORMS. LAST MONTH, THEY SIGNED 10-YEAR AGREEMENTS WITH NINTENDO AND NVIDIA.

THE OFFER TO LICENSE DEALS TO RIVALS SEEMS TO HAVE DONE THE TRICK IN THE EU, WHERE REGULATORS ARE USUALLY TOUGHER THAN THOSE IN THE U-S.

BUT MICROSOFT IS FACING A CHANGING DYNAMIC AT THE US FEDERAL TRADE COMMISSION WITH PROGRESSIVE ANTITRUST ENFORCER LINA KHAN AT THE HELM.

THE FTC HAS ASKED A JUDGE TO BLOCK THE DEAL OUTRIGHT, WHILE THE UK HAS SUGGESTED MICROSOFT SELL OFF CALL OF DUTY, SOMETHING MICROSOFT SAYS IT’S NOT WILLING TO DO.

THE FTC, FOR ITS PART, IS COMING OFF A HIGH-PROFILE LOSS AGAINST META. IT FAILED TO BLOCK THE FACEBOOK COMPANY’S DEAL TO BUY VIRTUAL REALITY STARTUP WITHIN. THAT DEAL CLOSED LAST MONTH AFTER META’S VICTORY.

THE FTC TRIAL AGAINST MICROSOFT STARTS ON AUGUST SECOND.

I’M SIMONE DEL ROSARIO. IN NEW YORK IT’S JUST BUSINESS.