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Microsoft on Wednesday launched a lure attack in Washington to seek government approval for the $70 billion deal. buy video game company Activision BlizzardHe said that he would not grant privileges to his own games in app stores.
Microsoft’s CEO Satya Nadella and chairman Brad Smith said at a press conference in Washington that they plan to meet with officials to discuss the deal. Mr. Smith said he “shared with members of Congress where we were going” and that the company was “meeting with people from the think tank community and the like.”
Regulators are expected to offer Microsoft to buy Activision, the largest in Microsoft history – a tough review. The deal will combine Activision, which owns games like Call of Duty and World of Warcraft, with Microsoft’s Xbox operation, which streams hits like Halo and makes consoles and game subscription services.
To avoid this review, Microsoft executives brought a list of promises.
“We are proposing to write the largest check in Microsoft history for $68 billion, and we will only be allowed to write this check if 17 governments worldwide approve the transaction,” Smith said. “We want to be clear with regulators and the public that if this acquisition is approved, they can count on Microsoft to comply with emerging rules.”
Mr Smith and Mr Nadella have said they will commit to loosening restrictions on how other developers can access Microsoft’s app stores. They also said that they won’t force other developers to take payments from users who use Microsoft’s systems, that they will allow game developers to talk to players directly, and that the company will not promote their own games over competing products.
They acknowledged the arduous challenge of getting their blockbuster deals approved amid the growing scrutiny of major tech companies from the Biden administration. lina hanThe head of the Federal Trade Commission is a critic of tech giants. Amazon and Facebook’s parent company Meta.
Below that, the agency Lawsuit filed to prevent chipmaker Nvidia from buying Arm and promised to be more aggressive in examining more mergers and acquisitions. It has initiated a process to tighten standards in so-called vertical mergers, which could include Microsoft’s Activision offering, which is a combination of two companies along a supply chain.
Microsoft may also face difficulties abroad. Regulators in the UK and the European Union have been even more aggressive in filing antitrust lawsuits against tech giants or preventing them from purchasing.
Microsoft says it will help Activision compete in its emerging business. pseudo metaverseor virtual worlds that some tech companies believe people can work and play in.
Mr Nadella said the main message was that Microsoft would not dominate the games if the merger was approved. The company said it will be the third-largest provider of video games, with about 13 percent of the market.
“In traditional times, being number three in a highly fragmented market wouldn’t have been that interesting for anyone,” said Mr. Nadella.
Mr Smith said Microsoft had expressed support for antitrust legislation to show members of Congress that the company would not fight regulations it saw as inevitable.
“We are not in the world of 2018 and 2019,” he said. “We are aware that any major accusations made by a major tech company will be subject to further scrutiny. It is up to us to act quickly and transparently and be clear about how we manage it.”
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