A lawsuit challenging the deal is not guaranteed, and the
FTC's four commissioners have yet to vote out a complaint or meet with lawyers
for the companies, the report said, adding that the FTC staff reviewing the
deal are skeptical of the companies' arguments.
The FTC did not immediately respond to requests for comment
from Reuters.
"We are committed to continuing to work cooperatively
with regulators around the globe to allow the transaction to proceed, but won't
hesitate to fight to defend the transaction if required," an Activision
Blizzard spokesperson said. Any suggestion that the transaction could lead to
anticompetitive effects is "completely absurd," the spokesperson
added.
Shares of Activision fell about 2 percent in extended
trading after closing 1% higher.
Microsoft, maker of the Xbox game console, announced in
January the deal to buy Activision, the maker of Call of Duty and Candy Crush
games, in the biggest gaming industry deal in history as global technology
giants staked their claims to a virtual future.
Microsoft is betting on the acquisition to help it compete
better with videogame leaders Tencent and Sony.
The deal is also facing scrutiny outside the US. The EU
opened a full-scale investigation earlier this month. The EU competition
enforcer said it would decide by March 23, 2023, whether to clear or block the
deal.
Britain's antitrust watchdog in September said it would
launch a full-scale probe.
The acquisition could damage the industry if Microsoft
refused to give rivals access to Activision's best-selling games, Britain's
antitrust regulator has said.
The deal has drawn criticism from Sony, maker of the
Playstation console, citing Microsoft's control of games like Call of Duty.
"Sony, as the industry leader, says it is worried about
Call of Duty, but we've said we are committed to making the same game available
on the same day on both Xbox and PlayStation," Microsoft President and
Vice Chair Brad Smith has said.
A spokesperson for Microsoft said: "We are prepared to
address the concerns of regulators, including the FTC, and Sony to ensure the
deal closes with confidence. We'll still trail Sony and Tencent in the market
after the deal closes, and together Activision and Xbox will benefit gamers and
developers and make the industry more competitive." © Reuters