Microsoft CEO Satya Nadella is due in court Wednesday to defend the company’s proposed $69 billion takeover of video game maker Activision Blizzard against an attempt by federal regulators to block the deal.
Nadella and Activision Blizzard CEO Bobby Kotick are both scheduled to testify before U.S. District Judge Jacqueline Scott Corley on the fourth day of a court hearing in San Francisco. The proceedings are likely to make or break what would be the most expensive acquisition in technology history.
The U.S. Federal Trade Commission is trying to persuade Corley to issue an order that would prevent the takeover from being consummated before a more extensive administrative trial begins Aug. 2 in Washington. Microsoft is fighting to close the deal ahead of a July 18 deadline that could trigger it having to pay a $3 billion breakup fee to Activision.
“The harm to arises from gamers deserting our platform and going to Xbox,” said Ryan, the CEO of Sony Interactive Entertainment. Even if Microsoft followed through with a pledge to keep the game on PlayStation, Ryan said there could still be “some form of degraded experience for PlayStation gamers.”
Lee’s testimony led the judge to remark Tuesday that “all the testimony has been about Call of Duty in this case,” and to ask whether that might distinguish the acquisition from other game industry deals that have been challenged on similar grounds.
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