Activision pursued a Facebook buyout before selling to Microsoft, report says
Activision CEO Bobby Kotick and the board tried to sell the company to other companies, including Meta, Facebook’s parent company, before striking a deal with Microsoft, it is claimed.
Bloomberg reports that “Kotick and the board were not sold to Microsoft as an acquirer” and initially entered into agreements with at least two other companies, one of them being Meta Platforms, according to reports. sources aware of private conversations. As we now know, those talks were unsuccessful, so Activision returned to the table with Microsoft, with the two companies apparently working through the 2021 holiday season to craft the deal.
The nearly $70 billion Purchase Microsoft Activision is still on the move, but we can say that fusion is now much more than an idea. The two companies are in talks to close the deal in fiscal year 2023, which begins July 1, 2022 and ends June 30, 2023. If the talks go smoothly and the deal is approved by regulatory bodies regulation, it could be finalized this summer.
That said, several sources suggest that this agreement could run into problems with US lawmakers, among other parties. Just hours after Microsoft announced its megaton acquisition, the U.S. Department of Justice and the Federal Trade Commission announced a comprehensive review of merger antitrust guidelines as part of an ongoing campaign to better identify and regulate potentially illegal mergers. It’s unclear how agency guidelines will be updated as a result of this review, but the move could reasonably affect deals like Microsoft’s latest acquisition, which was already likely to come under scrutiny. given Microsoft’s position in technology and the sheer size of the deal.
Curiously, this decision seems to have been at least partly catalyzed by Facebook, which notably bought Instagram in 2012 and was sued by the FTC in December 2020 for alleged illegal monopolization. The actions of the FTC and DOJ can also be attributed to changes in FTC leadership, not to mention a fairly recent executive order by President Joe Biden “promoting competition in the American economy.”
Kotick would step down as CEO after the termination of this agreement.