FTC says Microsoft’s layoffs at Activision Blizzard may threaten merger approval

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The FTC has expressed dissatisfaction with Microsoft’s layoffs at Activision Blizzard, challenging the integrity of the Microsoft-Activision deal. Despite Microsoft’s earlier court assurances of maintaining operational independence between the two companies, the recent layoffs suggest a contradiction. The FTC’s ongoing efforts to reverse the merger highlight concerns over the true independence and integration of the companies involved. This situation underscores the complex dynamics of tech mergers and the potential for regulatory intervention even after deals are seemingly finalized.

– The FTC challenges Microsoft’s layoffs at Activision Blizzard as contrary to court promises.
– Concerns arise over Microsoft’s commitment to keeping Activision Blizzard operationally independent.
– The FTC seeks to reverse or modify the merger, emphasizing the difficulty of rectifying the situation post-layoffs.
– Microsoft defends its actions, arguing the layoffs were not solely merger-related and maintains its ability to divest Activision Blizzard if required.

This case illustrates the delicate balance between corporate restructuring and regulatory expectations, highlighting the challenges in navigating mergers in the tech industry.

Sources include: Polygon


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