Microsoft-Activision Deal May Proceed with Concessions Amid FTC Division

According to the New York Post, the Federal Trade Commission is considering a potential deal with Microsoft regarding its acquisition of Activision Blizzard. Sources indicate that the commission is divided, with the sole Republican member and one of the three Democratic members leaning towards approval. Despite FTC chair Lina Khan's efforts to block the merger, a 2-2 deadlock would not only allow the deal to proceed but also undermine her authority. Former FTC chairman William Kovacic believes the likely outcome will be FTC approval with concessions from Microsoft. He stated that Khan would probably opt for a settlement instead of a tie vote, saying, 'We got a great deal and only got it because we've been tough.' Recent reports suggest the FTC was considering a lawsuit to block the acquisition, but Microsoft is offering concessions, including a 10-year licensing deal with Sony for Call of Duty on PlayStation. A Microsoft representative said, 'We are prepared to address the concerns of regulators, including the FTC, and Sony to ensure the deal closes with confidence. Even after the deal, we will still trail Sony and Tencent in the market, and together Activision and Xbox will benefit gamers and developers, making the industry more competitive.'