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FTC Seeks to Block Microsoft Corp.’s Acquisition of Activision Blizzard, Inc.

Summary

The Federal Trade Commission (FTC) has filed a complaint seeking to block Microsoft Corp.'s acquisition of Activision Blizzard, Inc. due to antitrust concerns. The FTC believes the acquisition would reduce competition in the video game industry. The FTC is also proposing to adjust the threshold for Hart-Scott-Rodino premerger notification filings and to make certain reportability changes for 2022.

Q&As

What is the Federal Trade Commission's (FTC) position on Microsoft Corp.'s acquisition of Activision Blizzard, Inc.?
The Federal Trade Commission (FTC) is seeking to block Microsoft Corp.'s acquisition of Activision Blizzard, Inc.

What are the potential implications of the FTC's decision on the proposed acquisition?
The potential implications of the FTC's decision on the proposed acquisition could include the blocking of the acquisition, or the imposition of certain conditions on the acquisition.

What changes to the Hart-Scott-Rodino (HSR) threshold have been proposed for 2022?
The proposed changes to the Hart-Scott-Rodino (HSR) threshold for 2022 include raising the threshold for reportable transactions from $94 million to $95 million.

What are the requirements for companies to report acquisitions under the HSR Act?
Companies are required to report acquisitions under the HSR Act if the size of the transaction exceeds the applicable HSR threshold.

How is the FTC's decision likely to affect the proposed acquisition of Activision Blizzard, Inc. by Microsoft Corp.?
The FTC's decision is likely to have a significant impact on the proposed acquisition of Activision Blizzard, Inc. by Microsoft Corp., as the acquisition could be blocked or certain conditions could be imposed.

AI Comments

👍 It is great to see that the FTC is taking proactive steps to ensure fair competition in the marketplace.

👎 This move by the FTC may limit competition and limit consumers from accessing better services or products.

AI Discussion

Me: It's about the FTC seeking to block Microsoft's acquisition of Activision Blizzard. They claim that the proposed transaction is anti-competitive and would lead to higher prices.

Friend: Wow, that's pretty serious. What does that mean for Microsoft and Activision Blizzard?

Me: Well, if the merger goes through, it could lead to higher prices for consumers, less competition, and fewer choices. It could also mean that smaller companies might have a more difficult time entering the market and competing with the larger companies. On the other hand, if the merger is blocked, it could mean that Microsoft and Activision Blizzard will have to look for other ways to grow their businesses.

Action items

Technical terms

HSR Threshold Adjustments
The Hart-Scott-Rodino Antitrust Improvements Act (HSR Act) requires companies to notify the Federal Trade Commission (FTC) and the Department of Justice (DOJ) before they can complete certain mergers and acquisitions. The HSR Act sets thresholds for when a company must notify the FTC and DOJ. These thresholds are adjusted annually to account for inflation.
Reportability
Reportability is the requirement to notify the FTC and DOJ of a proposed merger or acquisition. Companies must report a proposed transaction if it meets the HSR Act's thresholds for size and market share.

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