new bloomberg (opens in new tab) Microsoft faces even more opposition to its proposed acquisition of Activision Blizzard, as Nvidia and Google have expressed their own concerns about the deal with the FTC, the report says.
Sources told the site that the companies said in comments to the FTC that the deal could give Microsoft an unfair advantage in cloud gaming, subscription-based gaming services, and mobile gaming. This supports the FTC’s position in its lawsuit to stop trading. (opens in new tab)filed in December 2022.
Sony has been the most vocal opponent of Microsoft’s proposed acquisition of Activision Blizzard for obvious reasons, but Nvidia and Google are also in contention. Nvidia Powers GeForce Now (opens in new tab) A cloud gaming service, you may be concerned that Activision Blizzard’s games could be monopolized by Microsoft’s rival Xbox Cloud Gaming. (opens in new tab) service. Nvidia did not directly oppose the deal, but “underscored the need for equal and open access to game titles,” according to the report.
Google recently pulled the plug on its own cloud gaming service, Stadia, but similar issues could arise on the mobile front. An often overlooked component of Activision Blizzard (at least from a PC gaming perspective) is mobile game developer King. (So the company is sometimes called ABKMore (opens in new tab).) King is Activision Blizzard’s main source of revenue, but more importantly, he’s the developer of hugely popular mobile games like Candy Crush. Microsoft recently expressed interest in launching its own service. mobile game store (opens in new tab)and it’s not unreasonable to think that it might make King’s games exclusive to the storefront.It’s not the end of the world for Google, but it’s not great either. said they really want Activision for their mobile gaming features. (opens in new tab).
A Microsoft representative told Bloomberg that the company is “ready to address issues raised by regulators and competitors and has been proactive in addressing them so that we can complete the transaction with confidence. ‘ said. “
The initial expectation was that Microsoft’s acquisition of Activision Blizzard would ultimately succeed. (opens in new tab), and I think it’s still a smart bet.But buyout resistance appears to be growing instead of weakening: the FTC is the only regulator to take action on the deal, but both the UK and (opens in new tab) and EU (opens in new tab) I also refused to wave my hand to acknowledge it.
At the very least, similar to the 10-year deal Nintendo and Steam signed in December 2022, Microsoft could be forced to make more concessions regarding access to Activision Blizzard games. Belief that the FTC could knock the deal outright: Nvidia gave up (opens in new tab) The company’s bid to buy UK-based chip maker Arm in 2022 comes shortly after the FTC filed a lawsuit to stop the deal. (opens in new tab).