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December 9, 2022

News Analysis: FTC's Lina Khan Blocks $69 Billion Microsoft - Activision Acquisition

Microsoft Faces Its Biggest Challenge Despite Its "Social" Standing

Microsoft's CEO Satya Nadella’s and Vice Chair and President Brad Smith face their toughest challenge.  There was always the belief that so long Microsoft acted like a “good citizen” on social issues they would be immune to anti-trust.  That myth has been burst.  The FTC has filed a lawsuit and a judge must decide if the case is strong enough to block the $69 billion deal.  To be blunt, the FTC fears Microsoft will not provide titles for other platforms.  Other headwinds include 16 countries that will have to approve the mega deal.  China will probably block the deal to protect TenCent's position.  Tencent also owns 5% of Activision.