By Senad Karaahmetovic
Shares of Activision Blizzard (NASDAQ:) fell more than 3% premarket Friday after Politico reported that the U.S. Federal Trade Commission (FTC) is likely to file an antitrust suit over Microsoft’s (NASDAQ:) $69 billion takeover offer. to block.
The report added that FTC staff working on the deal are skeptical of the companies’ arguments about why the deal should ultimately go through. While the FTC is likely to file an antitrust suit, such actions are still not guaranteed, the Politico report added.
“We are committed to continuing to work with regulators around the world to allow the transaction to go through, but we will not hesitate to fight to defend the transaction if the need arises,” an Activision Blizzard spokesperson said. Reuters.
Earlier this year, Microsoft announced a deal with Activision Blizzard, the largest in gaming industry history. As such, the deal was always up for scrutiny, with the EU opening a full-scale investigation this month, after Britain’s antitrust watchdog also launched an investigation in September.
“We are prepared to address the concerns of regulators, including the FTC, and Sony (TYO:) to ensure the deal is closed with confidence. We will continue to market Sony and Tencent (HK:) follow after the deal closes, and together Activision and Xbox will benefit gamers and developers and make the industry more competitive,” Reuters quoted Microsoft’s spokesperson as saying.
ATVI shares are expected to open at $74 per share, about 22% lower compared to the deal price of $95 per share.