Why can’t Microsoft acquire Blizzard?

Quick answer

This page answers Why can t Microsoft acquire Blizzard? quickly.

AnswerTipsNext

Fast answer first. Then use the tabs or video for more detail.

• Watch the video explanation below for a faster overview.
• Game mechanics may change with updates or patches.
• Use this block to get the short answer without scrolling the whole page.

• Read the FAQ section if the article has one.
• Use the table of contents to jump straight to the detailed section you need.
• Watch the video first, then skim the article for specifics.

Microsoft can acquire Blizzard, as the company has completed its $69 billion deal to buy Activision Blizzard, the maker of games including Call of Duty and World of Warcraft, after the UK’s competition watchdog cleared the acquisition, although the purchase was initially bogged down by legal action due to concerns over competition and market share. The main reason for the initial opposition to the acquisition was the fear that Microsoft’s gaming division would own too much of the industry, unfairly limiting its competitors and ultimately harming consumers.

Introduction to the Acquisition

Background

The acquisition of Activision Blizzard by Microsoft has been a highly debated topic in the gaming industry, with many regulators and competitors expressing concerns over the potential impact on competition and market share.

FAQs

Question 1: Why was the purchase bogged down by legal action?

The purchase was bogged down by legal action due to concerns over competition, with critics arguing that Microsoft’s gaming division would own too much of the industry, unfairly limiting its competitors and ultimately harming consumers.

Question 2: What are the concerns about market share?

The concerns centered around the potential effect on market share in the console gaming market, with regulators arguing that Microsoft could make Activision Blizzard’s games exclusive to its consoles, thereby hurting competition with rivals Sony and Nintendo.

Question 3: Can Microsoft buy Blizzard?

Microsoft has completed its $69 billion deal to buy Activision Blizzard, after the UK’s competition watchdog cleared the acquisition.

Question 4: Who blocked Microsoft’s acquisition of Activision Blizzard?

Britain’s competition regulator initially blocked the deal in April, citing concerns over competition and market share.

Question 5: Why didn’t Microsoft buy Activision?

The acquisition was initially blocked due to concerns over competition, with governments worried about Microsoft having too much power and potentially making it more expensive, harder, or even impossible to play some games on consoles from other companies.

Question 6: What will Microsoft do if it can’t buy Activision?

Microsoft has completed its $69 billion deal to buy Activision Blizzard, but if the deal had been blocked, the company would have had to explore alternative options, such as licensing agreements or partnerships.

Question 7: Did the government stop Microsoft from buying Activision?

The government initially blocked the deal, but Microsoft made concessions to ensure that rivals would have continued access to games developed by Activision, and a federal judge in the United States ruled against the FTC’s attempt to delay the acquisition.

Question 8: Can Microsoft actually buy Activision?

Microsoft has completed its $69 billion deal to buy Activision Blizzard, after the UK’s competition watchdog cleared the acquisition.

Question 9: What happens to my Activision stock when Microsoft buys it?

Activision stockholders will receive $95 for each share of Activision they owned prior to the close.

Question 10: Are gamers suing to stop Microsoft from buying Activision Blizzard?

Video game players sued Microsoft over its $69 billion bid to buy Activision Blizzard, asking a US judge to deny Microsoft’s effort to pause the consumer antitrust lawsuit pending the resolution of the US Federal Trade Commission’s legal challenge to the deal.

Question 11: Why does the FTC want to block Microsoft?

The FTC argued that the transaction was anti-competitive because Microsoft might make some of its games exclusive to its own game consoles or diminish the experience of Activision games on rival services.

Question 12: What will Microsoft do with Blizzard?

Microsoft will add nine Blizzard game studios to Xbox Game Studios and bring some 8,500 Activision employees into the Microsoft fold, and will also have scores of Blizzard’s games to offer on Xbox Game Pass.

Question 13: Why did Blizzard sell to Microsoft?

The acquisition will help bolster Microsoft’s Xbox Game Pass subscription service by bringing mega-hit franchises like Call of Duty and Diablo under the company’s purview.

Question 14: Why can’t Microsoft and Activision merge?

US antitrust officials argued that an injunction temporarily blocking the deal was necessary because allowing the merger to close amid ongoing litigation would have caused immediate harm to video gamers and other consumers.

Question 15: Is Xbox trying to buy Blizzard?

Microsoft, which owns the Xbox gaming system, has completed its $69 billion deal to buy game-maker Activision Blizzard, after fending off global opposition from antitrust regulators and rivals.