game news Takeover of the century: will Microsoft finally manage to buy Activision? Experts have an answer
The case between Microsoft and the FTC is ongoing. Will the American giant be able to confirm its acquisition of Activision-Blizzard? Experts assume so.
New “shock” phase in Xbox-FTC case: “We wouldn’t be here if Microsoft had created Call of Duty.” A statement by Judge Jacqueline Scott Corley before the American giant’s lawyers. With a speech like this, we understand that According to Justice, the industry would rather make their own blockbuster licenses than buy them.
Judge Corley asked the FTC about it There’s a chance another game developer could offer a title of similar scope if Microsoft buys Call of Duty. She said: “I’m trying to figure out why there is so much focus on Call of Duty. Isn’t there an argument that would compel someone to create another good annual game? After all, M. Kotick (CEO of Activision Blizzard, ed.) practically started from scratch, but he could have done it, right?
IGN polled experts to see if it was possible to figure out how that deal would come about. Most analysts agreed that the judge would likely rule in Microsoft’s favor and surprise them otherwise.. Florian Ederer, associate professor of economics at the Yale School of Management, said: “Everyone knows that the FTC is very, very, very aggressive at this time.”
The Federal Trade Commission doesn’t prosecute because it’s easy to win. They present cases that anticipate the new frontiers of corporate dominance. Microsoft’s goal is to create a monopoly in the entertainment industry, the fastest growing industry out there, with an acquisition at a price 70 times higher than Facebook’s acquisition of Instagram. Lee Hepner, global tax director at General Atlantic
What’s next for the Xbox vs. FTC case?
Microsoft economist Dr. Liz Bailey argued on the witness stand this week that Call of Duty is not unique. He endorses Microsoft and realizes that not all of the market revolves around the gun license. In a tense moment in court, the FTC attorney declares, “The merger is permanent.” Corley replied: “We’re not interested in the harm done to Sony, we care about the harm done to consumers.”. If the FTC loses the hearing, it could immediately appeal the judge’s decision. It could also choose to continue its case against Microsoft even after the merger is complete.
