The proposed $69 billion merger between Microsoft and Activision Blizzard faces antitrust scrutiny from the Federal Trade Commission (FTC).
Microsoft CEO Satya Nadella argues that making Activision games exclusive would make "no strategic sense" and emphasizes the importance of software running on multiple platforms.
Activision Blizzard CEO Bobby Kotick asserts that restricting access to "Call of Duty" on other platforms would harm the game's popularity and alienate users.
Microsoft CEO Dismisses Concerns of Exclusive Access in Activision Blizzard Merger.
Microsoft CEO Satya Nadella addresses antitrust concerns during the trial; Bild: Stanford University
The proposed $69 billion merger between Microsoft and Activision Blizzard is facing a fierce battle with the Federal Trade Commission (FTC) due to antitrust concerns. The FTC argues that the merger would grant Microsoft, the maker of the Xbox console, exclusive access to Activision Blizzard's games, including the immensely popular "Call of Duty," leaving Nintendo and Sony Group out in the cold.
During his approximately 45-minute testimony, Microsoft CEO Satya Nadella disagreed with these concerns. He emphasized that it would make no economic or strategic sense for Microsoft to refuse access to the games on Sony's PlayStation. Nadella stated that he comes from a company that has always believed software should run on as many platforms as possible.
To address the FTC's concerns, Microsoft has agreed to license the blockbuster game "Call of Duty" to competitors. The company also argues that financially, it is better off licensing the games to all interested parties.
The FTC has requested that Judge Jacqueline Scott Corley in San Francisco temporarily halt the deal's closure, allowing the agency's in-house judge to make a ruling on the case. Historically, the losing side in federal court often concedes, rendering the in-house process unnecessary.
While the proposed merger has gained approval in many jurisdictions, it has been met with opposition from the FTC in the United States and the Competition and Markets Authority in Britain. Much of the trial testimony has focused on "Call of Duty," one of the best-selling video games of all time.
Activision Blizzard CEO Bobby Kotick emphasized the importance of offering the game across multiple platforms, including consoles, mobile phones, and personal computers. He argued that there was no incentive for Microsoft, if the deal were to proceed, to restrict who can offer the company's games. Kotick stated that removing "Call of Duty" from Sony's PlayStation would be "very detrimental" to Activision Blizzard's business.
He also acknowledged that the deal, which he expressed a strong desire to close, would value his personal shares at over $400 million.
The ongoing proceedings are being closely watched, as the outcome of the case could have far-reaching implications for the video game market.
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