{"id":30057,"date":"2023-01-13T21:00:10","date_gmt":"2023-01-13T21:00:10","guid":{"rendered":"https:\/\/mailinvest.blog\/index.php\/2023\/01\/13\/google-nvidia-reportedly-express-concerns-over-microsofts-activision-blizzard-acquisition\/"},"modified":"2023-01-13T21:00:10","modified_gmt":"2023-01-13T21:00:10","slug":"google-nvidia-reportedly-express-concerns-over-microsofts-activision-blizzard-acquisition","status":"publish","type":"post","link":"https:\/\/mailinvest.blog\/index.php\/2023\/01\/13\/google-nvidia-reportedly-express-concerns-over-microsofts-activision-blizzard-acquisition\/","title":{"rendered":"Google, Nvidia reportedly express concerns over Microsoft\u2019s Activision Blizzard acquisition"},"content":{"rendered":"

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Google LLC and Nvidia Corp. have reportedly raised concerns to the Federal Trade Commission about Microsoft Corp.\u2019s proposed acquisition of Activision Blizzard Inc. for $68.7 billion.<\/span><\/p>\n

Bloomberg <\/span>reported<\/span><\/a>\u00a0the development late Thursday, citing sources familiar with the matter. It\u2019s believed Google and Nvidia may be asked to testify as part of an upcoming FTC trial focused on the Activision Blizzard acquisition. The trial is set to begin on Aug. 3.\u00a0<\/span><\/p>\n

Last January, Microsoft <\/span>inked<\/span><\/a> a $68.7 billion deal to acquire Nasdaq-listed Activision Blizzard, which ranks as one of the world\u2019s largest video game developers by revenue. Activision Blizzard <\/span>generated<\/span><\/a> an operating income of $485 million on $1.78 billion in sales during the third quarter. Its popular collection of video games had 368 million monthly active users as of Sept. 30.\u00a0<\/span><\/p>\n

Last month, the FTC <\/span>filed suit<\/span><\/a> to block Microsoft from completing the acquisition. The FTC argues that the deal would hurt the company\u2019s rivals in the video game console and cloud gaming markets. Those rivals include Nvidia, which provides a cloud gaming service called GeForce Now that competes with Microsoft\u2019s Xbox Game Pass offering.<\/span><\/p>\n

Nvidia, along with Google, has reportedly provided information to the FTC about the antitrust implications of Microsoft\u2019s Activision Blizzard acquisition. The companies\u2019 feedback reportedly underscores that the deal could negatively impact competition in the cloud, subscription and mobile gaming markets.<\/span><\/p>\n

According to Bloomberg, Nvidia told the FTC that \u201cequal and open access to games is important.\u201d But the company reportedly \u201cdidn\u2019t go so far as to oppose the acquisition.\u201d<\/span><\/p>\n

Last month, a Microsoft executive <\/span>stated<\/span><\/a> that Sony Corp. was the \u201conly major opposer\u201d to the deal. Sony, which competes with Microsoft in the video game market, has <\/span>argued<\/span><\/a>\u00a0that the deal would harm developers and consumers. It\u2019s believed that the feedback provided by Nvidia and Google could add more weight to the FTC\u2019s arguments in the antitrust case over the deal.<\/span><\/p>\n

\u201cWe are prepared to address and have been proactively addressing issues raised by regulators and competitors to ensure that the deal closes with confidence,\u201d Microsoft said in a statement. \u201cWe want people to have more access to games, not less.\u201d<\/span><\/p>\n

As part of its efforts to address regulators\u2019 concerns, the company has offered a 10-year video game distribution agreement to Sony. The agreement is designed to ensure that many of Activision Blizzard\u2019s most popular games roll out to Microsoft and Sony consoles on the same day. However, Sony has <\/span>reportedly<\/span><\/a> not accepted yet the offer.\u00a0<\/span><\/p>\n

If the proposed acquisition of Activision Blizzard is approved, Microsoft\u2019s video game division would become the third-largest in the industry by revenue. The company previously spent $7.5 billion in 2021 to <\/span>acquire<\/span><\/a> ZeniMax Media Inc., another major video game developer.\u00a0<\/span><\/p>\n

Photo:\u00a0Pixabay<\/a><\/h5>\n
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