Four US Senators have called out Bobby Kotick ahead of the FTC's probe of the $68.7 billion Microsoft-Activision Blizzard deal.
According to Windows Central, Senators Bernie Sanders, Elizabeth Warren, Cory Booker, and Sheldon Whitehouse have all written FTC chairwoman Lina Khan to "consider" the company history of ActiBlizz in its deliberation of the Microsoft deal. Aside from that, the senators have also called on the FTC to take a closer look at Microsoft's statement of "not standing in the way" of unionization.
The letter was sent in lieu of the controversy surrounding Activision Blizzard, punctuated by the toxic workplace lawsuit filed last year by the state of California. Aside from that, the senators are also concerned about the potential "anticompetitive effects" that the deal could produce.
Axios gaming reporter Stephen Totilo posted the letter's text on his Twitter account if you want to read it in its entirety:
Here's the letter pic.twitter.com/EaKtBTvUIg
— Stephen Totilo (@stephentotilo) March 31, 2022
Among the things that the lawmakers have called out is the accusations against embattled ActiBlizz CEO Bobby Kotick. In the toxic workplace lawsuit, Kotick is accused of covering up any accusations of sexual misconduct within the company, while also being well aware of other similar incidents.
The senators say that Kotick's apparent "lack of accountability" despite the constant clamor for his removal is an "unacceptable result" of the multibillion-dollar Microsoft-Activision Blizzard deal.
If you're unaware, the aforementioned deal is not expected to push through until 2023. And as a result, Kotick will remain as CEO for the foreseeable future—to the obvious dismay of disgruntled employees and some investors calling for him to step down.
Does This Mean That The Microsoft-Activision Blizzard Merger Is In Trouble?
When news broke out that the "stricter" FTC will be handling the probe on the $68.7 billion deal, there were concerns that it might not push through. And now, the urging from four US lawmakers is adding even more fuel to the fire.
This is due to FTC chairwoman Lina Kahn, who's been known as a staunch critic of anticompetitive Big Tech practices in the past. She has gained a bit of notoriety for her strong desire to rein in the influence of Big Tech companies, despite apparent intimidation from these said giants-Facebook and Amazon, in particular-as reported by CNBC.
There's a good chance that Kahn will definitely consider the concerns outlined in the letter from the senators during the Microsoft-Activision Blizzard deal probe. But some analysts are confident that there might not even be that big of a pushback from the FTC, considering the deal's nature as a "vertical transaction."
This type of transaction, according to analyst Atty. Kellen Voyer, involves a big company (in this case, Microsoft) buying up a smaller one which offers a very different service or product from what it sells. Atty. Voyer argues that this kind of merger tends to experience "less scrutiny" from an antitrust probe.
Either way, this is a developing story, so check back here at Tech Times for updates.
This article is owned by Tech Times
Written by RJ Pierce
