Microsoft Head on Activision Blizzard Acquisition: “Moving Fast”

Microsoft President Brad Smith said in a recent interview with Belgian trade publication L’Echo that Microsoft’s $68.7 billion acquisition of Activision Blizzard is “moving fast.”

In January, Microsoft announced plans to acquire Activision Blizzard in cash and bring the Activision, Blizzard, and King franchises to Warcraft, Diablo, Overwatch, Call of Duty, and Candy Crush under the Microsoft Gaming name.

Subject to customary closing conditions and the completion of regulatory review, the proposed transaction is expected to close during Microsoft’s fiscal year ending June 30, 2023.

“He’s moving fast,” Smith said, “at least fast enough to pick up that body.” We have received inquiries about this in Brussels as well as in London and Washington. We answer questions, give briefings and provide requested information.

“One of our lawyers summed it up very well and said, ‘We’re going up, now we’re going in the middle.’ It’s a long process and we’re still in the question-answering phase. For us, of course, the sooner it’s done, the better, but we respect the process.

As expected, Activision Blizzard announced at the end of April that more than 98% of its shareholders had voted in favor of the proposed transaction with Microsoft at a special general meeting.

If the deal goes through, Microsoft will be the world’s third-largest gaming company by revenue, after Tencent and Sony.

The real question, of course, is whether Microsoft will be able to persuade regulators to approve the deal within the next 12 months.

In February, it was reported that the Federal Trade Commission (FTC) would conduct a review of the planned deal by Microsoft, an agency that has taken a more aggressive stance on mergers in the tech space.

FTC Chair Lina Khan has advocated tougher antitrust scrutiny, especially in mergers between tech companies. He has already sued the FTC for blocking two major conglomerates: Nvidia’s proposed purchase of semiconductor company Arm Ltd. and the arms deal with Lockheed Martin to acquire missile maker Aerojet Rocketdyne. Holdings.

The FTC’s investigation into the Microsoft-Activision deal will focus on the production capabilities of early consoles and PCs, as well as the development and release of subsequent games. Regulators will likely focus on whether Microsoft-owned Activision Blizzard is hurting other game companies by limiting their access to major Activision Blizzard franchises.

In April, four US senates sent a letter to the FTC urging it to carefully consider Microsoft’s proposed takeover bid, warning that Microsoft could reduce liability for Microsoft’s culture of sexual harassment and gender discrimination.