Microsoft’s Activision Blizzard deal is reportedly one step closer to passing

The FTC could still approve Microsoft $69bn acquisition

(Credit: Microsoft)

➡️ The Shortcut Skinny: Microsoft-Activision

• 👍 The US Federal Trade Commission looks to be closer to approving Microsoft’s controversial buyout of Activision Blizzard

• 🤷‍♀️ A new report suggests the commission is now split on the issue

• 🚫 The FTC might prefer to pass the deal with concessions rather than block it

• 🌍 Microsoft is already expected to offer concessions to the EU

The Federal Trade Commission is reportedly inching closer toward approving Microsoft’s proposed acquisition of Activision Blizzard.

Two of the FTC’s four commissioners reviewing the buyout are now thinking of letting it pass, according to a fresh report by the New York Post. 

Only Christine Wilson, the panel’s sole Republican, was previously thought to be sympathetic to the merger. But it’s now claimed that one of the three remaining Democrat commissioners has switched their view, bringing the panel to an even split.

FTC Chair Lina Khan is reportedly still against the deal and is expected to stand against it. A report from only a few weeks ago suggested the FTC would block the merger as part of its attempt to clamp down on the power of big tech companies.

But the New York Post suggests that in an event of a two-two tie between the commissioners, or if all three other members of the panel eventually support the deal, Khan may prefer to approve it with concessions from Microsoft instead of completely blocking it.

“Lina would probably not put things in a position for that to take place, so instead of having that vote she would make the motion to approve the settlement,” William Kovacic, a former FTC Chairman, told the New York Post. 

“The way out is to say, ‘We got a great deal and only got it because we’ve been badasses.'”

A report from last month suggested Microsoft is prepared to offer EU regulators concessions to get the deal approved, including promising to keep Call of Duty on PlayStation platforms for at least 10 years.

Kovacic said Khan would have a harder time blocking the deal if Microsoft did make concessions to the FTC, and now puts the chances of the merger passing at 70%.

 “What makes it difficult is when Microsoft goes to their friends in blue and says, ‘We have provided a package of solutions for all the perceived problems, and the folks at the FTC are being very unreasonable if they don’t take it,'” Kovacic said.

Microsoft has become more bullish since announcing the proposed acquisition earlier in the year, but Activision Blizzard appears to be confident it will pass. Sony, for its part, is still staunchly opposed.