Microsoft's (MSFT) acquisition of video game developer Activision Blizzard (ATVI) has been given the all-clear signal by U.K. regulators. Yahoo Finance Live highlights the timeline of events since Microsoft first announced this $69 billion deal, what it means for Microsoft's outlook, and potential FTC roadblocks.
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This post was written by Luke Carberry Mogan.
Video transcript
- Well, we're taking a look at some of the movers ahead of the opening bell.
And first up is Microsoft on the move today.
You can see it just above the flat line here ahead of the open.
The UK-- clearing the tech giant's acquisition of Activision.
Now, the $69 billion deal was blocked in April by the country's antitrust regulators.
They said that it raised competition concerns.
The deal is expected to close in the next few days, clearly, a massive victory here.
Finally, I think Microsoft and Activision would say they've been waiting for quite some time to get that regulator approval here, Brad, just about a year and a half.
If you can believe it, actually feels like we've been talking about this for just about 18 months of that timeline makes sense.
But there are still some questions just about the FTC and how far the FTC could potentially still go in their push against the deal because they have made some comments and some signs here from Lina Khan saying that the FTC still is not going to give up.
- Yeah.
We've got a note as well from Activision CEO Bobby Kotick-- he sent this to employees as well, saying that we now have all the regulatory approvals necessary to close, and we look forward to bringing joy and connection to even more players around the world.
But the larger consideration here, and why this really sent so much of a conversation and concerted conversation, and almost a tizzy through many of the regulatory watchdogs over the course of the last year and since this deal was announced-- was to make sure that competition would not be squashed.
Because you've essentially got what is already one of the largest console players, which would be combining, and is looking like they're able to combine finally with one of the largest tidal players out there in the creation and development of these games here.
And so, Bobby Kotick-- Bobby Kotick, just going on to say we're excited for this next chapter together with Microsoft.
Endless possibilities creates for gamers and for other players.
And so, all of that considered-- I think it will be interesting to tell with some of the concessions that they did have to give up in order to get this through, they ended up having to offload certain divisions and making sure that this still got and passed the sniff test at the end of the day.
And so even with those concessions here, where this still creates a wholistic environment for gamers who are moving increasingly towards streaming, continuing to see brand equity in a few games.
And yeah, mobile-- still going to be one of the larger considerations for this industry at whole here.
So, Microsoft, Activision seems like they've got the go ahead and the all clear, at least as some of the approvals are concerned pending the FTC, as you mentioned.
- And in the FTC, we know FTC says it's not backing down here in terms of some of the avenues that they're pursuing.
The agency also pursuing a separate administrative challenge through in house judicial system.
But we have to remember though, a judge did rule against what the FTC was proposing, saying that the deal could go ahead here in the US.
But again, that mobile gaming exposure, obviously, one of the critical reasons, or the critical reasons to why Microsoft wanted to buy Activision, we're seeing that acquisition it looks like going through.