Federal Judge Denies FTC’s Request to Halt Microsoft’s Acquisition of Activision Blizzard
In a recent development, a federal judge in Northern California has denied a request from the Federal Trade Commission (FTC) to pause Microsoft’s $69 billion deal to buy Activision Blizzard while the FTC appeals the acquisition. U.S. District Judge Jacqueline Scott Corley ruled on Tuesday that Microsoft’s pending takeover of the video game giant can move forward, against the FTC’s wishes.
The FTC had filed court filings on Wednesday, stating that it was appealing Corley’s decision to the U.S. Court of Appeals for the Ninth Circuit. However, in an order issued on Thursday, Corley denied the FTC’s motion to put Microsoft’s purchase of Activision on hold while the appeal moves forward.
Microsoft and Activision had previously set a deadline of July 18 to complete the acquisition. The two companies had announced the deal back in January 2022. The FTC, responsible for enforcing antitrust laws, had filed a lawsuit in December to block the sale, arguing that it would allow Microsoft to suppress competitors to its Xbox gaming consoles and its rapidly growing subscription content and cloud-gaming business.
In her ruling on Tuesday, Corley stated that “the FTC has not raised serious questions regarding whether the proposed merger is likely to substantially lessen competition in the console, library subscription services, or cloud gaming markets.”
The trial in the FTC’s lawsuit is scheduled to take place in August in the FTC’s own in-house court. The FTC’s request to Corley for an injunction was an attempt to block the merger before the trial begins.
If the deal goes through, it would be the largest acquisition of a video game company in U.S. history.
What are the potential implications of Microsoft’s acquisition of Activision Blizzard on competition in the console, library subscription services, and cloud gaming markets, according to the judge’s ruling
Federal Judge Denies FTC’s Request to Halt Microsoft’s Acquisition of Activision Blizzard
In a recent development, a federal judge in Northern California has denied a request from the Federal Trade Commission (FTC) to pause Microsoft’s $69 billion deal to buy Activision Blizzard while the FTC appeals the acquisition. U.S. District Judge Jacqueline Scott Corley ruled on Tuesday that Microsoft’s pending takeover of the video game giant can move forward, despite the FTC’s objections.
The FTC had filed court filings on Wednesday, stating that it was appealing Corley’s decision to the U.S. Court of Appeals for the Ninth Circuit. However, in an order issued on Thursday, Corley rejected the FTC’s motion to put Microsoft’s purchase of Activision on hold while the appeal is underway.
Microsoft and Activision had previously set a deadline of July 18 to complete the acquisition. The two companies had announced the deal in January 2022. The FTC, responsible for enforcing antitrust laws, had filed a lawsuit in December to block the sale, arguing that it would enable Microsoft to stifle competitors to its Xbox gaming consoles and its rapidly expanding subscription content and cloud gaming business.
In her ruling on Tuesday, Corley stated that “the FTC has not raised significant questions regarding whether the proposed merger is likely to substantially diminish competition in the console, library subscription services, or cloud gaming markets.”
The trial in the FTC’s lawsuit is scheduled to take place in August in the FTC’s own in-house court. The FTC’s request to Corley for an injunction was an effort to prevent the merger from proceeding prior to the trial’s commencement.
If the deal is completed, it will be the largest acquisition of a video game company in U.S. history.
“Seems like Microsoft’s acquisition of Activision Blizzard will proceed as planned, despite FTC’s efforts. It will be interesting to see how this deal shapes the gaming industry’s landscape in the coming years.”