Microsoft Claps Back At FTC, Insists Activision Was 'Already Planning Significant' Layoffs
Portfolio Pulse from Franca Quarneti
Microsoft Corp. (NASDAQ:MSFT) has countered the Federal Trade Commission's (FTC) criticism regarding the 1,900 layoffs post-Activision acquisition, stating Activision was already planning significant layoffs prior to the merger. Microsoft criticized the FTC's claims as 'incomplete and misleading,' highlighting that the layoffs were part of pre-existing plans by Activision, aligning with broader industry trends. The tech giant also mentioned its readiness to reverse the acquisition if necessary, though deemed unlikely. The FTC's concerns are focused on antitrust issues rather than workforce implications.
February 09, 2024 | 10:14 pm
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NEUTRAL IMPACT
Microsoft defends its post-Activision acquisition layoffs, stating they were pre-planned by Activision, amidst FTC's antitrust concerns.
Microsoft's rebuttal to the FTC's claims and clarification on the layoffs being pre-planned by Activision could neutralize negative sentiment, maintaining its stock stability in the short term. The focus on antitrust rather than layoffs minimizes immediate financial impact.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 90
NEGATIVE IMPACT
Sega Sammy Holdings Inc. is mentioned as part of broader gaming industry layoffs, reflecting wider sector challenges.
Mention of Sega Sammy Holdings Inc. in the context of industry-wide layoffs could contribute to a negative perception of the company's short-term prospects, potentially impacting its stock negatively due to broader sector challenges.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50