Can Big Tech Get Bigger? Microsoft Presses Governments to Say Yes.
Bobby Kotick, Activision’s chief executive, said in an interview that he had a “high degree of confidence that the regulators will be thoughtful about evaluating the industry.” He added, “I have no reason to believe that we won’t ultimately be successful in the transaction.”
Microsoft’s deal for Activision was unveiled on Jan. 18. In February, Mr. Smith and Mr. Nadella met with officials and people working at think tanks in Washington to position the purchase with the public. During a meeting with reporters, Mr. Nadella said the acquisition would benefit gamers by providing “more choice so they can play any game on any platform.” Courts regularly look at whether a merger will benefit consumers.
Several senators asked the F.T.C. to closely examine the acquisition’s impact on workers. The Communications Workers of America, which had been organizing at Activision, also publicly questioned the deal. Ms. Khan, the F.T.C. chair, has taken a greater interest in scrutinizing how mergers could hurt workers.
Mr. Smith asked lawmakers and government leaders for advice on addressing the labor concerns.
In June, Microsoft hammered out an agreement with the C.W.A., promising not to oppose unionization at Activision. The negotiations involved “more lawyers than a lawyer convention,” Chris Shelton, the union’s president, said in an interview. The concessions turned the union into supporters of the deal.
Last month, Mr. Shelton met with Ms. Khan and praised Microsoft’s commitment to remain neutral in union campaigns and said the deal should be approved.
“The F.T.C. told me, ‘A lot of companies promise lots of things, then they never keep their promises,’” he recalled. He said he told the agency that the agreement was rock solid, and in writing.
A spokesman for the F.T.C. said agency officials had offered no opinions on the deal or the labor agreement in the meeting.
Article source: https://www.nytimes.com/2022/11/21/technology/microsoft-activision-deal.html