The Big Number: 70 Billion

By Marie SolisJune 23, 2023

The Big Number: 70 Billion

A federal judge is deciding whether Microsoft’s $70 billion acquisition of the video game giant Activision Blizzard can move forward.

Here’s why that matters →

Allie Sullberg

The Federal Trade Commission sued Microsoft last year to block the deal through an in-house court, arguing that the acquisition would harm competition by bringing together Microsoft’s Xbox console and game streaming service with Activision’s popular games, like Call of Duty.

This month, the agency filed another suit in federal court, asking a judge to prevent the deal from going forward before the F.T.C. has the chance to argue the case in its internal court.

If the judge rules that the acquisition can proceed, it would be the largest consumer tech deal in decades. If the judge delays it, a Microsoft lawyer says the company may abandon it.

Microsoft says the deal would be good for consumers, allowing them to play Activision’s games through low-cost options like Microsoft’s Xbox Game Pass, a subscription service.

The company wants to close the transaction by July 18. If the federal judge sides with the F.T.C. and sends the case to the in-house court, Microsoft’s lead lawyer said, that will set off a “three-year administrative nightmare” that will sink the deal.

Virginia Mayo/Associated Press

The clash is just the latest chapter in the F.T.C.’s campaign to curb the power of big tech companies. Under Lina Khan, its chair, the agency has sued Meta, Facebook’s parent company, and Amazon, over issues related to competition and consumer protections.

These legal challenges haven’t always been successful — and the suit against Microsoft will be another test of the F.T.C.’s ability to deliver on its mandate.

Pool photo by Graeme Jennings

1 of 5

Inside the World of Video Games