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Request to prevent Microsoft from buying Activision foiled by court

  • By Al Mayadeen English
  • Source: News websites
  • 15 Jul 2023 14:59
2 Min Read

The US appeals court's decision clears the way for the deal to proceed and expand Microsoft's gaming business.

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  • Microsoft building in New York City -undated picture- (AFP)
    Microsoft building in New York City in an undated picture (AFP)

A US appeals court has denied the Federal Trade Commission's (FTC) request to pause Microsoft's $69 billion purchase of video game developer Activision Blizzard, which includes popular titles like Call of Duty, World of Warcraft, and Candy Crush Saga, The Guardian reported.

The court's decision removes one of the remaining obstacles for Microsoft to finalize the deal and expand its gaming business.

While the acquisition still requires approval in the UK, the merger agreement between Microsoft and Activision is set to expire on July 18. If an extension is not negotiated, either company will be free to walk away from the deal.

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Read more: Microsoft's bid to buy Activision Blizzard faces anti-trust threat

The FTC argued that the merger would harm consumers by potentially shutting out rivals like Sony Group. In response, Microsoft offered 10-year licenses to competitors. However, Judge Jacqueline Scott Corley ruled that the deal was legal under antitrust law and declined the FTC's request for a preliminary injunction.

Activision Blizzard's CEO, Bobby Kotick, believes that the merger will benefit consumers and workers, promoting competition in the rapidly growing industry. With the latest court ruling, Microsoft moves closer to finalizing the historic acquisition, pending approval in the UK.

Read more: Microsoft wins FTC fight to buy Activision Blizzard, CMA reconsiders

  • Videogames
  • Activision
  • Microsoft

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