Legal Expert Weighs In on Legality of Microsoft's Acquisition of Activision Blizzard

Legal Expert Weighs In , on Legality of Microsoft's Acquisition , of Activision Blizzard.

Legal Expert Weighs In , on Legality of Microsoft's Acquisition , of Activision Blizzard.

IGN reports that a legal expert says Microsoft's acquisition of Activision Blizzard is not likely to run afoul of antitrust laws.

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IGN reports that a legal expert says Microsoft's acquisition of Activision Blizzard is not likely to run afoul of antitrust laws.

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Recently, Microsoft acquired Bethesda, another major studio and one of the industry's leading game developers.

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Recently, Microsoft acquired Bethesda, another major studio and one of the industry's leading game developers.

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According to IGN, that acquisition passed antitrust regulation because it was a vertical integration where a content distributor, like Xbox, purchased a content producer or game studio.

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IGN reports that David Hoppe, a Managing Partner at the San Francisco-based Media and Tech law firm, Gamma Law, says the Microsoft Activision deal operates on the same principle.

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IGN reports that David Hoppe, a Managing Partner at the San Francisco-based Media and Tech law firm, Gamma Law, says the Microsoft Activision deal operates on the same principle.

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The acquisition is another example of so-called ‘vertical integration’ in the video game industry — a console manufacturer (distributor) acquiring a game developer (producer), David Hoppe, Managing Partner at Gamma Law, via IGN.

Of course, this is the largest such deal in games industry history, but U.S. courts have historically been unwilling to apply restrictive antitrust principles to vertical transactions, David Hoppe, Managing Partner at Gamma Law, via IGN.

According to Hoppe, despite the probable legality of the deal, consolidation of this magnitude could harm the industry.

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Hoppe suggests that the clear winners are , “likely to be Activision executives, who benefit from a major diversion of attention from a huge, potentially existential crisis, and undoubtedly have the assurance of rich exit packages at the appropriate time.”.

Hoppe suggests that the clear winners are , “likely to be Activision executives, who benefit from a major diversion of attention from a huge, potentially existential crisis, and undoubtedly have the assurance of rich exit packages at the appropriate time.”.

IGN reports that Microsoft's acquisition of Activision Blizzard is scheduled to be finalized by June of 2023.

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IGN reports that Microsoft's acquisition of Activision Blizzard is scheduled to be finalized by June of 2023.