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vixolus

Prophet of Truth
Member
Sep 22, 2020
55,957
Microsoft President Brad Smith is planning to meet with the Federal Trade Commission's three Democratic members on Wednesday in a last-ditch bid to keep the tech giant's blockbuster video-game deal from getting scrapped over antitrust concerns, The Post has learned.

Smith and a small group of his attorneys are slated to meet individually with FTC Chair Lina Khan — who is said to be skeptical of the tie-up and who this summer pledged to scrutinize the deal over its impact on workers — as well as Democratic commissioners Rebecca Slaughter and Alvaro Bedoya, according to sources close to the situation.

On Sunday, The Post exclusively reported that at least one Democrat on the four-member panel has recently taken a sympathetic view of the merger — with insiders speculating it might be Slaughter — potentially paving the way for it to get approved. Republican FTC Commissioner Christine Wilson has already voiced support of the deal.

Sources said Microsoft's Smith is scrambling to win over the powerful panel in a hurry — partly because Khan is pregnant and expected to go on maternity leave next month.

"Chair Khan is expecting a baby in January and will take a short parental leave before quickly returning to her duties," FTC spokesperson Douglas Farrar said. "The idea that any possible law enforcement actions by the Commission could be affected by her pregnancy is sexist and absurd speculation with absolutely no basis in reality."

The FTC's commissioners are slated for a closed-door meeting on Thursday to discuss the merger and there's an outside chance they could vote on it, sources said.

The panel also could meet to vote on the deal later this month. Microsoft had believed the FTC would make its final ruling in the first quarter of 2023 but the FTC review has lately moved at a faster pace than it expected, the source said.

An Activision spokesman declined to comment. Microsoft also declined to comment.

Sources said Smith — who on Monday wrote an op-ed in the Wall Street Journal arguing for the deal — will stress that Microsoft is now offering rival Sony a 10-year licensing deal for Activision games including "Call of Duty" on its PlayStation consoles, and that the games would be released to them at the same time it becomes available on Microsoft's Xbox.

Sony's concern is Microsoft by owning a leading console maker and a maker of popular video games could have too much market power.

Separately this week, the Communications Workers of America said it supported the deal as news broke that 300 workers at Microsoft gaming studio ZeniMax are voting this month on forming Microsoft's first union.

CWA said the merger would give Microsoft and Activision Blizzard workers a clear path to collective bargaining and unionization in what it considers a major Microsoft concession. The politically influential union is saying the deal is good for workers and they will be hurt if the FTC sues to block the merger.

As reported by The Post, a fellow Democrat supporting the Microsoft deal could create a difficult path to block the deal for FTC Chair Khan — who according to insiders has eyed Microsoft's deal as a major target as she looked to burnish her credentials as a trustbuster of Big Tech.

That's because a 2-2 vote would not only fail to block the deal, but also would result in it getting cleared without any major conditions imposed by a settlement, including the concessions it has recently pledged to Sony.

FTC's staff was reportedly close to recommending a suit to block the deal, but that was reportedly before the Microsoft floated its settlement offer.

Microsoft has agreed to pay $95 a share for Activision. Its shares were trading Tuesday at $76.11
 

ElNino

Member
Nov 6, 2017
3,745
I would assume they're commenting on parental leave. The USA has notoriously poor rights regarding this. My wife is from Canada, and was shocked when she found out a lot of jobs don't offer standard parental leave or roughly 12 weeks. Some places in Canada offer 1 year of parental leave, although I don't know the specifics.
Everyone in Canada is entitled to 52 weeks parental leave at 55% of their wages (with a cap). Some companies will top up the maternal/parental leave for varying periods (my spouse was 100% for 16 weeks). My company didn't begin offering parental leave top up (for the non-birthing parent) until after our second child so I missed out on being to able to double up, but at least I was able to take some vacation at the time.
 

Trup1aya

Literally a train safety expert
Member
Oct 25, 2017
21,553
I mean, we will truly see how much continued consolidation enables them to continue to compete, or, as Microsoft notes, the gaming industry will result in only those of scale being pertinent players, while the rest are reduced to niche players.

Why are we pretending that there's a reasonable threat of consolation leading to PS being foreclosed from content. First of all, the market is for fragmented than ever with countless studios finding success via self publishing. Secondly, there's virtually no chance that any platform holder would get approval to achieve a monopolistic share of publishing power via acquisition. Thirdly, potential mergers between 3rd parties would have no incentive to ignore Sony's platform.

Both Sony and Microsoft are pursuing a hybrid approach for the distribution of their titles. Sony has demonstrated releasing first party titles onto PS+ on Day 1, just as Microsoft continues to sell games to gamers who do not subscribe to Game Pass. Sony just revamped their subscription service, so I expect there to be more Day 1 titles (both first party and third party) releases going forward - they've even begun marketing Day 1 releases on PS+.

I don't disagree that they both have hybrid approaches. My point is that Sony is unwilling to decouple their streaming service from purchases of their hardware. If a player wants to stream new Sony PS5 games, they must own a PlayStation device and hope that it appears on the short list of supported titles. Why? Because streaming threatens to be a disruptive force in a market where they are king of generating revenue via the plastic box.

But given the significantly reduced resources that Sony has at its disposal, they need to be more judicious in their approach to their model.

Or their conservatism could mean they miss an opportunity to be first to capitalize on a new market and would have no one to blame but themselves

Given this is a stated need for acquiring the largest video game publisher, on top of the already ~23 studios, unless it's complete bullshit (I see quite a bit of 'Game Pass has gotta eat'), it seems that Sony will have quite a bit of difficulty until they're able to amass a similar horde of studios and IP, which doesn't seem likely.

The number of studios MS thinks they need has no bearing on how many Studios Sony would need to have success with a similar model. For the past 2 decades, Sony has produced more hit games and with greater frequency than Xbox AND has been more successful at attracting 3rd parties. This is without having MS war chest. The idea that Sony would need to match Microsoft's spend on content in order to compete isn't grounded in reality.

As such, we're seeing them focus on a multitude of ventures and initiatives to carve out a differentiated experience for their ecosystem.

I don't disagree. Sony is well diversified and as such is well positioned to compete, despite acquisitions being made within the industry. They still have massive market power, an industry leading IP portfolio, industry leading talent, and the resources to build a foothold in streaming and mobile… If they want to. But they prioritize their plastic box, because that's where they are comfortable.
 

vixolus

Prophet of Truth
Member
Sep 22, 2020
55,957
yeah Brad only explicitly mentioned Call of Duty, not all Activision games in his op-ed
 

cyrribrae

Chicken Chaser
Member
Jan 21, 2019
12,723
three other Democratic members... meaning Democratic FTC staff? or like members of the house/senate?
Yea, I was also wondering exactly this question. Now I'm wondering if they meant that they're going to meet with the Republican commissioner, as well? Cuz honestly, at least PRETEND like you're not locking out some members of the commission haha, even if they're actually somewhat irrelevant. "Only democrats get to take the meetings" would be a... wild... position to take.

Also, whatever article you posted is not written super well and has several errors.. (Assuming it's from the NY Post again?)
 

Aurora

Member
Jul 22, 2018
1,379
Lemuria

308852661_159343126704437_1227087092978720644_n.png
 

vixolus

Prophet of Truth
Member
Sep 22, 2020
55,957
Yea, I was also wondering exactly this question. Now I'm wondering if they meant that they're going to meet with the Republican commissioner, as well? Cuz honestly, at least PRETEND like you're not locking out some members of the commission haha, even if they're actually somewhat irrelevant. "Only democrats get to take the meetings" would be a... wild... position to take.

Also, whatever article you posted is not written super well and has several errors.. (Assuming it's from the NY Post again?)
the article itself is from the NY Post which that tweet is referencing. The article said the 3 Dem commissioners, so I think they got the number wrong as that includes Khan herself.
 

Bxrz

Banned
Dec 18, 2020
1,902
Come on Politico / Reuters, confirm or deny NYP's reports 😭
I mean they didn't say anything crazy, unless I missed it

All that was said is Brad Smith will meet with FTC tomorrow because Khan is about to go on leave and Microsoft wants the FTC's side finished before that happens
 

cyrribrae

Chicken Chaser
Member
Jan 21, 2019
12,723
LOL incredible!

the article itself is from the NY Post which that tweet is referencing. The article said the 3 Dem commissioners, so I think they got the number wrong as that includes Khan herself.
Yea, that's how it reads. Is that normal? Like I get that when we're talking about Congress and other purely political bodies, but.. iono. And yes, I recognize that FTC and other agencies are politically appointed. But these are positions that last not only past the President who appointed them, but even over multiple Presidents. Iono just weird (and perhaps why that other Republican just chose to resign - and probably take a more lucrative job elsewhere). But also not that big of a deal practically.

I don't think is that serious. Considering that the Republican member is on board with the merger, it makes sense that he will meet with the other members who are not completely on board yet.
All the more reason for Brad Smith to want all of them there. This reads more like the Democrats boxing out the Republican than that this was a MS choice per se. Unless that Republican is incredibly toxic or counterproductive in some way.

Unless this is a carefully orchestrated and premeditated anime betrayal 4D chess move, where Smith wants Khan to feel at ease amongst her peers before he reveals the traitor who will vote for the deal in defiance of Khan's leadership in a dramatic flourish - sinking in the metaphorical knife into the unprotected back of the pending FTC lawsuit......

(/s btw).
 

vixolus

Prophet of Truth
Member
Sep 22, 2020
55,957
LOL incredible!


Yea, that's how it reads. Is that normal? Like I get that when we're talking about Congress and other purely political bodies, but.. iono. And yes, I recognize that FTC and other agencies are politically appointed. But these are positions that last not only past the President who appointed them, but even over multiple Presidents. Iono just weird (and perhaps why that other Republican just chose to resign - and probably take a more lucrative job elsewhere). But also not that big of a deal practically.
I don't see anything strange about it. the 3 commissioners up in the air are all the Democrat ones.
 
Jun 20, 2021
5,005
Microsoft President Brad Smith is planning to meet with the Federal Trade Commission's three Democratic members on Wednesday in a last-ditch bid to keep the tech giant's blockbuster video-game deal from getting scrapped over antitrust concerns, The Post has learned.

Is it really "last-ditch"? This seems like one of potentially several remedies to get the deal underway, especially now that Microsoft is offering major concessions (10 year deal, union recognition will be popular with Democrats, etc.).
 

Frieza

Member
Oct 25, 2017
3,868
I feel like every time some non gaming site writes "ten year licensing agreement for ABK content" people take it as non COD stuff lol. These journalists just don't know much about gaming and probably think all Activision makes is Call of Duty which is a fair assumption tbh
 

cyrribrae

Chicken Chaser
Member
Jan 21, 2019
12,723
I don't see anything strange about it. the 3 commissioners up in the air are all the Democrat ones.
Eh. If this was MS's preference, then sure. Just seems weird to me. If this is business as usual at the FTC, then I've made my feelings known.

But like I said, I recognize that it doesn't actually make a difference to the outcome.
 

UraMallas

Member
Nov 1, 2017
19,418
United States
Is it really "last-ditch"? This seems like one of potentially several remedies to get the deal underway, especially now that Microsoft is offering major concessions (10 year deal, union recognition will be popular with Democrats, etc.).
I took that as just a case of good old journalistic liberty. At the end of the day, it is kind of the last ditch effort regardless of how close the FTC is to approving or suing. There won't be another time that Microsoft will be able to get in front of them before real decisions are made. So, while it makes it sound like they are desperate, it's probably more just that it's an incredibly important meeting and Smith is going to have to turn up the heat, if he can.
 

vixolus

Prophet of Truth
Member
Sep 22, 2020
55,957
Eh. If this was MS's preference, then sure. Just seems weird to me. If this is business as usual at the FTC, then I've made my feelings known.

But like I said, I recognize that it doesn't actually make a difference to the outcome.
Im confused where you're confused haha

The commission has 5 members max. One party can only have 3 commissioners. He's meeting with the Dems because the one R is already supportive so he's hashing it out with the doubters to appeal to them. Seems like a normal meeting to have as part of the merging party.
 

Zebesian-X

Member
Dec 3, 2018
20,016
Is it really "last-ditch"? This seems like one of potentially several remedies to get the deal underway, especially now that Microsoft is offering major concessions (10 year deal, union recognition will be popular with Democrats, etc.).
It's definitely last ditch in the sense that the FTC is rumoured to be making a decision on December 8th. But otherwise yeah it's hard to parse how much of the article is based on the Post's reporting and how much is them just sprinkling in some spice
 

Tigerfish419

Member
Oct 28, 2021
4,558
I feel like every time some non gaming site writes "ten year licensing agreement for ABK content" people take it as non COD stuff lol. These journalists just don't know much about gaming and probably think all Activision makes is Call of Duty which is a fair assumption tbh

Probably doesn't help Sony making it about Call of Duty lol, everyone who isn't in the know about games know about Call of Duty but without a doubt have no clue what Diablo or Overwatch is haha and with that I think this is probably why Sony did make it all about Call of Duty.
 

AntiMacro

Member
Oct 27, 2017
3,152
Alberta
"Sony's concern is Microsoft by owning a leading console maker and a maker of popular video games could have too much market power."

This is so fucking ludicrous.
 

Ratuso

Member
Nov 27, 2021
1,207
I mean they didn't say anything crazy, unless I missed it

All that was said is Brad Smith will meet with FTC tomorrow because Khan is about to go on leave and Microsoft wants the FTC's side finished before that happens

I'm more reffering to the report that said that one member was flipping
 

UraMallas

Member
Nov 1, 2017
19,418
United States
I feel like even getting an audience right before the vote is a positive for Microsoft. It might not come down in their favor but being the last one in the room to voice your side can never be a bad thing imo.
 

cyrribrae

Chicken Chaser
Member
Jan 21, 2019
12,723
Im confused where you're confused haha

The commission has 5 members max. One party can only have 3 commissioners. He's meeting with the Dems because the one R is already supportive so he's hashing it out with the doubters to appeal to them. Seems like a normal meeting to have as part of the merging party.
lol fair enough. To me, you'd talk to all of them at once. If one of the members was already convinced.. great. That's another supportive voice in the room. They can ask helpful questions (unless we know they can't). Right now, you're essentially talking to the one maybe unconvinced person on the panel (Khan is pretty clearly sticking to her guns on this one). Why would you fill that room with only the likely 2 voices that are actively trying to contradict everything you say? But anyway. I'm over it lol.

I find it interesting that Phil Spencer isn't showing up to this meeting. (Or at least isn't named). Guessing that means they're planning on doing some deep dives on what MS will do in terms of concessions, and the context role that Phil can provide is finished. Maybe. lol

I feel like even getting an audience right before the vote is a positive for Microsoft. It might not come down in their favor but being the last one in the room to voice your side can never be a bad thing imo.
There's still time before the vote. A few weeks at least. What's happening soon is that the FTC STAFF are making their recommendation (likely lawsuit) to the commission. It's interesting that Smith is talking directly to the commissioners and not the staff at this point, of course. Sounds (guessing here) like they're all treating the staff recommendation as a done deal and just getting to the work beyond it.
 

cyrribrae

Chicken Chaser
Member
Jan 21, 2019
12,723
Wonder if the CWA being for the deal could make the republican rep flip on the deal.
The Republicans are more worried about the direction of the agency than they are about unions in general, anyway. Or less charitably, blocking Lina Khan (or the perception of her activism) is more important than why.
 

VinFTW

Member
Oct 25, 2017
6,476

vixolus

Prophet of Truth
Member
Sep 22, 2020
55,957
any new/further details in there?
A so-called last rites meeting between the companies and the FTC's commissioners –- who make the final call and vote on any agency actions -– is often one of the last steps before either a lawsuit or a settlement are filed.

Microsoft President Brad Smith and other company executives are expected to attend the meetings, the person said, asking not to be named discussing the confidential probe.