Rift at FTC stirs hope for Microsoft’s $69B Activision merger: sources

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Rift at FTC stirs hope for Microsoft’s $69B Activision merger: sources
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At least one Democrat on the four-member panel has recently taken a sympathetic view of the merger, according to a source close to the situation.

That, in turn, could create a difficult path for FTC Chair Lina Khan — who according to insiders has eyed Microsoft’s deal as a major target as she looks to burnish her credentials as a trustbuster of Big Tech.scrutinizing the deal’s impact on workers

A Democratic defection would leave Khan with a 2-2 tie in any vote to clamp down on the merger — a result that would not only effectively OK the deal but also throw Khan’s authority over the agency into question. That, accordingly, is a vote that Khan isn’t likely to risk, according to DC insiders. Politicos will likely be calling commissioners like mother Rebecca Slaughter pressuring them to support the merger.Senate Majority Leader Chuck Schumer in July reportedly went to Washington state to meet Microsoft President Brad Smith and discuss, among other things, the pending Activision merger and its potential impact on New York. They also reportedly met in February.

As reported by The Post early last month, Microsoft’s stubborn refusal to offer concrete concessions to regulators and rivals in exchange for winning the deal has been a major sticking point. If Microsoft is finally showing a willingness to budge, that weakens any case by the FTC to block the merger — and emboldens dissenters, according to experts.

“It does become hard to say, ‘This is not good enough,'” said Kovacic, who now puts the chances of the merger getting approved at 70%. “It becomes more difficult for the Commission to push this aside.”

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