EU opens in-depth investigation into Microsoft's planned $69B acquisition of Activision (update)
David Ramos

The European Commission said on Tuesday it was opening an in-depth investigation into Microsoft's (NASDAQ:MSFT) planned $69B acquisition of Activision Blizzard (NASDAQ:ATVI) on fears that the deal may "significantly reduce competition."
In a statement, the Commission said concerns have cropped up that the deal would lessen competition in a number of markets, including console and PC games, subscription and cloud game streaming services, as well as for PC operating systems.
"In particular, the Commission is concerned that, by acquiring Activision Blizzard, Microsoft may foreclose access to Activision Blizzard's console and PC video games, especially to high-profile and highly successful games (so-called âAAA' games) such as Call of Duty," the statement read.
The announcement comes as no surprise, as the deadline to open an in-depth investigation was today.
In a letter to employees on Tuesday, Activision Blizzard (ATVI) CEO Bobby Kotick said the company would continue to work with the European Commission, as well as work with Microsoft (MSFT) to engage with regulators in other countries as they perform their reviews.
On Monday, Kotick said the sale remains on track to close in the quarter ending in June.
"We continue to expect that our transaction will close in Microsoftâs current fiscal year ending June 2023," Kotick said in a statement in conjunction with the video game maker's third-quarter results.
Microsoft (MSFT) shares rose 1.5% in early Tuesday trading, while Activision Blizzard (ATVI) rose nearly 1.8% to $72.36, well below the $95-per-share cash offer from Microsoft.
Separately on Tuesday, Take-Two Interactive (TTWO) CEO Strauss Zelnick said he had no issues with the Microsoft's (MSFT) planned $69B purchase of Activision (ATVI) and that most of his competitors feel the same way.