Skip to content
Technology — Industry — Activision — Finance — Fairness — Merger — Business — Corley — Hinges

Acquisition Victory: Microsoft Secures Purchase of Activision Blizzard

Judge in California gives approval for Microsoft to complete Acactivision Blizzard acquisition, despite antitrust suit by FTC. Judge Jacqueline Scott Corley turned down FTC's temporary injunction appeal following deliberations.

,   and  Administrator
3 min read
Following five days of detailed testimonies, Judge Jacqueline Scott Corley in California grants...
Following five days of detailed testimonies, Judge Jacqueline Scott Corley in California grants Microsoft the approval to complete its takeover of Activision Blizzard. This verdict arrives in the midst of an ongoing antitrust lawsuit initiated by the Federal Trade Commission (FTC). Yet, the judge dismisses the FTC's demand for a temporary restraining order, having listened to arguments from both parties...

Acquisition Victory: Microsoft Secures Purchase of Activision Blizzard

In a major victory for tech giant Microsoft, a California judge has given the green light to finalize its acquisition of Activision Blizzard, following heated courtroom battles with the Federal Trade Commission (FTC). This decision comes amidst an ongoing antitrust lawsuit filed by the FTC, but Judge Jacqueline Scott Corley denied the FTC's request for a preliminary injunction after reviewing arguments from both parties.

Known as the largest tech merger ever, the judge's ruling highlighted the significance of the deal while stressing the need for scrutiny. She deemed Microsoft's commitments to keep Call of Duty available on PlayStation for a decade, ensure parity with Xbox, and expand the game to Nintendo Switch, along with agreements to bring Activision's content to various cloud gaming services, sufficient. The judge argued that the FTC fell short in demonstrating a likelihood of winning their claim that the merger would substantially lessen competition. Instead, she stated that the evidence supported increased consumer access to Call of Duty and other Activision content.

Microsoft's commitment to multi-platform availability and expansion was reinforced by the judge's decision, even in the face of the FTC's challenges to Microsoft's cloud agreements. The ruling acknowledged the Nintendo Switch as part of the console market, while also acknowledging the FTC's argument that PCs should be excluded from this definition.

In response to the ruling, Microsoft President Brad Smith expressed gratitude, while Xbox Head Phil Spencer thanked the court for its swift and comprehensive judgment. Activision Blizzard CEO Bobby Kotick also welcomed the decision, highlighting the potential for the merger to drive competition and benefit consumers. The FTC, however, expressed disappointment and hinted at potential further action to preserve competition and protect consumers. As of now, the FTC has until July 14th to appeal the decision.

The completions of the Microsoft-Activision Blizzard deal depend on negotiations with the UK Competition and Markets Authority (CMA). The deal's progress has been complex due to the UK regulator's initial opposition, leading to the FTC's initial request for an injunction. However, recent developments suggest a potential resolution in the UK, as both Microsoft and the CMA agreed to pause their legal battle and negotiate modifications to address the CMA's concerns regarding cloud gaming. European regulators approved the deal in May, but the absence of the UK and the absence of a US injunction complicates matters.

FTC Chair Lina Khan, who has been actively pursuing Big Tech companies since taking office in 2021, faces another potential setback if the court order remains unchallenged. The outcome of the FTC's decision will become clearer in the days leading up to July 14th.

Related Topics:

M&A - Microsoft's Acquisition of Activision

Microsoft vs FTC in the Court Room

The $75 Billion Microsoft-Activision Deal: Is it a Deal Breaker?

Did you know that the SiGMA Forex Summit will take place in Cyprus this September?

Enrichment Data:- The FTC filed a lawsuit against Microsoft's acquisition of Activision Blizzard on January 18th, 2023.- The initial trial was completed on May 5th, 2023.- On July 28th, 2023, the final ruling was made in favor of Microsoft.- The deal was completed in October 2023.- The FTC had the opportunity to appeal the ruling until July 14th, 2023, but as of now, they have not indicated that they will.

  1. The judge's ruling in favor of Microsoft hinges on the fairness of the tech giant's assurances, such as keeping Call of Duty available on PlayStation for a decade and expanding the game to Nintendo Switch.
  2. The merger between Activision Blizzard and Microsoft, valued at $75 billion, has significant implications for the technology, finance, and business sectors, influencing competition and consumer access to games.
  3. The Future of the FTC's antitrust lawsuit against Microsoft over the acquisition of Activision Blizzard remains uncertain, as the FTC has until July 14th to appeal the decision but has not yet announced their intention to do so.
  4. The progress of the Microsoft-Activision Blizzard deal is complex, as negotiations with the UK Competition and Markets Authority (CMA) continue, with recent developments suggesting a potential resolution in the UK.

Read also:

    Related

    Latest