FTC Sues to Block Microsoft Activision Acquisition

The Federal Trade Commission (FTC) sued to block Microsoft $69 billion takeover of Activision Blizzard, which would be the biggest acquisition in the video game industry. The FTC voted 3-1 on Thursday to sue, claiming that the Xbox maker would have the “means and motive” to harm the competition by changing prices or degrading the quality of Activision’s (ATVI) top games, which include Call of Duty, World of Warcraft, and Overwatch. The FTC warned that Microsoft (MSFT) could withhold content from other systems altogether. Read More...

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Why Activision Blizzard Stock Fell Today

The gaming publisher’s share price fell roughly 1.5% on news that the Federal Trade Commission (FTC) will be challenging Microsoft’s (NASDAQ: MSFT) buyout of the company in court. Meanwhile, the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average indexes closed out the daily session up roughly 0.8%, 1.1%, and 0.6%, respectively. In its recently published complaint against the proposed $68.7 billion buyout, the FTC alleged that allowing the deal to go through would hurt the competitive landscape in the video game industry and enable Microsoft to stifle its rivals in the space.The agency has filed a suit to block the deal in an administrative court, and developments on the regulatory front will likely continue to shape Activision Blizzard’s stock performance in the near term.

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