Microsoft, U.S. regulators head to court over $69 billion deal that could reshape video gaming

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Microsoft on Thursday will try to gain clearance to complete a $69 billion takeover of video game maker Activision Blizzard in a legal showdown with U.S. regulators that will reshape a pastime that's bigger than the movie and music industries combined.

The battle will pit Microsoft’s ambition to expand its video game imprint beyond its Xbox console against the U.S. Federal Trade Commission’s bid to block a deal that it contends will stifle competition and innovation to the detriment of consumers.

After all the evidence and arguments are presented, Corley will decide whether or not to grant the FTC’s request for a court order that would keep the deal in a holding pattern until a more exhaustive administrative trial that’s scheduled to begin in Washington D.C. on August 2. The judge isn’t expected to rule until after the Fourth of July holiday.

All those gamers are willing to pay upwards of $70 to own marquee titles like Call of Duty or fork over a steady stream of recurring subscriptions to services such as Microsoft’s Xbox Game Pass, Amazon’s Luna and Nvida’s GeForce. One small step for an intrepid crew of 24th century space explorers could be a giant leap — or flop — for Microsoft when the Xbox-maker launches its long-awaited video game Starfield.

Like regulators are now, the gamers argued that Microsoft’s takeover of Activision would stifle competition and reduce consumer choice. They later brought an amended lawsuit, but Corley in May denied their request for an injunction to block the deal.

 

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Microsoft, U.S. regulators head to court over $69 billion deal that could reshape video gamingMicrosoft on Thursday will try to gain clearance to complete a $69 billion takeover of video game maker Activision Blizzard in a legal showdown with U.S. regulators that will reshape a pastime that’s bigger than the movie and music industries combined. The battle will pit Microsoft’s ambition to expand its video game imprint beyond its Xbox console against the U.S. Federal Trade Commission’s bid to block a deal that it contends will stifle competition and innovation. Both Microsoft CEO Satya Nadella and Activision Blizzard CEO Bobby Kotick are expected to testify at some point during five days of hearings scheduled in San Francisco.
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