FTC Revives In-House Challenge to Microsoft-Activision Deal

The US Federal Trade Commission is reviving its challenge against Microsoft Corp.’s $69 billion acquisition of video game company Activision Blizzard Inc., a move which may seek to unwind the deal after it closes.

The agency will move forward with its in-house trial against the acquisition after pausing it over the summer, according to an order the agency issued Wednesday. The move means the FTC will continue challenging the deal even after it has closed this year.

“The commission has determined that the public interest warrants that this matter be resolved fully and expeditiously,” the agency wrote in a filing. “Therefore, the commission is returning this matter to adjudication.”

The decision comes months after a US appeals court denied the FTC’s bid to pause the Microsoft-Activision acquisition in July. The FTC typically drops challenges to deals when they lose in federal court.

The companies are on track to complete the acquisition, which is the largest gaming deal ever in the US.

“We’re focused on working with Microsoft toward closing. How the FTC uses limited taxpayer dollars is its decision,” Activision spokesperson Joseph Christinat said.

UK competition authorities last week signaled they will accept the latest concessions in the deal, setting up Microsoft and Activision to clear their final regulatory hurdle.

“The FTC continues to believe this deal is a threat to competition,” said FTC spokesperson Victoria Graham. She said the agency is placing the issue on the commission’s calendar, but “our current focus is on the federal appeal process.”

--With assistance from Leah Nylen and Cecilia D’Anastasio.

To contact the reporter on this story:
Emily Birnbaum in Washington at ebirnbaum3@bloomberg.net

To contact the editors responsible for this story:
Sara Forden at sforden@bloomberg.net

Elizabeth Wasserman

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