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Microsoft’s deal with Ac...The tech giant’s intention with the deal was to expand its existing portfolio and stay ahead of the competition
Tech giant Microsoft was recently halted by The Biden Administration from going ahead with an acquisition deal worth $69 billion. According to the particulars of the deal, Microsoft was all set to purchase the popular game developer Activision Blizzard. The tech giant’s intention with the deal was to expand its existing portfolio and stay ahead of the competition. Back in January, it was announced that Microsoft is buying Activision for a record-breaking deal of $68.7 billion. If Microsoft fails to make the purchase, its position in the gaming market will be severely affected. The company’s budding subscription service will no longer be attractive to new gamers and its growth will take a huge dip.
Microsoft has stated that it wanted to go ahead with the deal in order to compete with other gaming leaders like Sony and Tencent. According to the complaint filed with the US Federal Trade Commission, it was mentioned that Microsoft is trying to gain an unfair advantage in the market by acquiring and hoarding valuable games. Director of Fair Trade Commission, Holly Vedova has stated that the tech giant has already shown that it can block gaming content from its rivals. Word from Microsoft’s President Brad Smith is that the company is willing to fight the FTC.