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Activision Blizzard CEO Bobby Kotick defends firm’s proposed acquisition by Microsoft in court

Activision Blizzard CEO Bobby Kotick defends firm’s proposed acquisition by Microsoft in court

Bobby Kotick, CEO of Activision

Activision Blizzard CEO Bobby Kotick appeared in court on Wednesday to defend Microsoft's intended $69 billion takeover of his video game company against a federal regulator's attempt to halt the deal.

Kotick told a federal judge in San Francisco on Wednesday that there is no basis for Microsoft to deprive Sony of the acclaimed Activision game Call of Duty. Kotick stated that making the game exclusive to Microsoft's Xbox console or offering poor versions on other systems, such as Sony's Playstation, is not in his company's best interests.

If we remove Call of Duty from Playstation, it would cause serious reputational damage to company:Kotick

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He added that making a subpar version for PlayStation would cause “vitriol from gamers” and is not something Activision developers would do.

Kotick's comments were intended to undermine a key allegation made by antitrust enforcers at the United States Federal Trade Commission, who contend that the acquisition will hurt competition in the video game industry.

On the fourth day of a court hearing in San Francisco, Kotick testified before U.S. District Judge Jacqueline Scott Corley. The hearings are expected to make or break what would be the most expensive technological acquisition in history. Microsoft CEO Satya Nadella was also set to testify on Wednesday.

98%of Activision Blizzard shareholders voted for deal

The hearing is a crucial test of the FTC's increased scrutiny of Big Tech under Chairperson Lina Khan, who has been open about her conviction that US regulators were overly permissive in previous accords that enabled giants like Amazon, Google, and Facebook togain their dominance. Six months ago, the FTC brought Facebook owner Meta Platforms to court in Silicon Valley to try to prohibit a buyout of a virtual reality fitness startup, only to be turned down by the judge.

Watch |Microsoft-Activision: $69bn deal temporarily blocked in US

Microsoft has praised the agreement with Activision Blizzard for making popular Activision gameslike Call of Duty more broadly available. The US Federal Trade Commission is attempting to persuade Corley to issue an order halting the takeover before a more detailed administrative trial begins on August 2 in Washington. Microsoft is battling to conclude the transaction by the July 18 deadline, which could compel it to pay a $3 billion breakup fee to Activision.

(With inputs from agencies)

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About the Author

Anuj Shrivastava

Anuj Shrivastava is a Senior News Editor at WION Digital with over 20 years of experience across publishing, print, and digital media. He’s passionate about news, has a penchant fo...Read More