If you thought the Microsoft x Activision Blizzard acquisition saga was at an end, you’d be wrong. Recently, it was revealed that the Federal Trade Commission – which tried tirelessly to block the $69 billion acquisition in the first place – has filed a notice to the US Court of Appeals, warning the court of Microsoft’s recent activities.
Specifically, the notice addressed Microsoft’s laying off of almost 2,000 employees, many of whom are in some way connected to Activision Blizzard, the recently acquired titan that was added to Microsoft’s already hefty arsenal.
Here We Go Again
In the letter that was filed with the US Court of Appeals, the FTC stresses that Microsoft’s dismissal of hundreds of Activision Blizzard employees – including developers and esports professionals – is in direct contradiction to terms outlined during the acquisition that dominated most of 2023’s headlines.
It states the following:
Microsoft’s recently-reported plan to eliminate 1,900 jobs in its video game division, including its newly-acquired Activision unit, contradicts the foregoing representations it made to this Court.
By that, the FTC is highlighting that Microsoft promised to let Activision Blizzard operate as an independent entity post-merger, and then weeks later, the tech behemoth is laying off hundreds of employees at the company.
The FTC also voiced concerns that if it were to try and ‘reverse’ the merger through an appeal, the mass layoffs could jeopardise the ability to split Activision Blizzard back away from Microsoft’s clutches.
More information is available in the letter that was shared on social media by CharlieIntel.
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