FTC likely to file lawsuit to block Microsoft bid for Activision -Politico - Reuters

Nov 23 (Reuters) - The U.S. Federal Trade Commission (FTC) is apt to record an antitrust suit to artifact Microsoft Corp's (MSFT.O) $69 cardinal takeover bid for video crippled steadfast Activision Blizzard Inc (ATVI.O), Politico reported connected Wednesday, citing radical acquainted with the matter.

A suit challenging the woody is not guaranteed, and the FTC's 4 commissioners person yet to ballot retired a ailment oregon conscionable with lawyers for the companies, the study said, adding that the FTC unit reviewing the woody are skeptical of the companies' arguments.

The FTC did not instantly respond to requests for remark from Reuters.

"We are committed to continuing to enactment cooperatively with regulators astir the globe to let the transaction to proceed, but won't hesitate to combat to support the transaction if required," an Activision Blizzard spokesperson said. Any proposition that the transaction could pb to anticompetitive effects is "completely absurd," the spokesperson added.

Shares of Activision fell astir 2% successful extended trading aft closing 1% higher.

Microsoft, shaper of the Xbox crippled console, announced successful January the woody to bargain Activision, the shaper of "Call of Duty" and "Candy Crush" games, successful the biggest gaming manufacture woody successful past arsenic planetary exertion giants staked their claims to a virtual future.

Microsoft is betting connected the acquisition to assistance it vie amended with videogame leaders Tencent (0700.HK) and Sony (6758.T).

The woody is besides facing scrutiny extracurricular the U.S. The EU opened a full-scale investigation earlier this month. The EU contention enforcer said it would determine by March 23, 2023, whether to wide oregon artifact the deal.

Britain's antitrust watchdog successful September said it would motorboat a full-scale probe.

The acquisition could harm the manufacture if Microsoft refused to springiness rivals entree to Activision's best-selling games, Britain's antitrust regulator has said.

The woody has drawn disapproval from Sony, shaper of the Playstation console, citing Microsoft's power of games similar "Call of Duty."

"Sony, arsenic the manufacture leader, says it is disquieted astir 'Call of Duty,' but we've said we are committed to making the aforesaid crippled disposable connected the aforesaid time connected some Xbox and PlayStation," Microsoft President and Vice Chair Brad Smith has said.

A spokesperson for Microsoft said: "We are prepared to code the concerns of regulators, including the FTC, and Sony to guarantee the woody closes with confidence. We’ll inactive way Sony and Tencent successful the marketplace aft the woody closes, and unneurotic Activision and Xbox volition payment gamers and developers and marque the manufacture much competitive."

Reporting by Tiyashi Dattaa and Mrinmay Dey successful Bengaluru; Editing by Sriraj Kalluvila and Leslie Adler

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