The Federal Trade Commission (FTC) has sought an interim injunction to block Microsoft’s planned acquisition of Activision Blizzard, a San Francisco federal appeals court ruled on Thursday. The company is on track to make one of the largest acquisitions ever in the U.S. games industry.
The deadline for completion of the acquisition procedure is 18th. Following the High Court’s ruling, the only remaining hurdle remains for UK regulators.
“We are one step closer to the finish line of the global regulatory review marathon,” Microsoft President Brad Smith said in a statement. A representative for Activision did not immediately respond to a request for comment.
Activision stock rose 4.4% to $94 in after-hours trading. It closed at $90.07 in regular trading. Microsoft shares rose 1.5%.
Led by Chairman Khan, the FTC has filed a lawsuit, arguing that Microsoft’s acquisition could prevent popular Activision games from being offered on competitors’ consoles and services. A temporary restraining order issued by a U.S. court expires at midnight Pacific time.
A legal representative carrying materials such as game consoles in connection with the lawsuit over Microsoft’s acquisition of Activision (June 23)
Photographer: Loren Elliott/Bloomberg
Microsoft needs to complete the deal by the 18th deadline to avoid a $3 billion penalty payment to Activision.
The FTC did not respond to a request for comment.
Britain’s Competition and Markets Authority (CMA) said in April it would not approve the deal, citing concerns about the impact of the cloud on the gaming market. However, it has since agreed to give Microsoft an opportunity to submit a remedy. Bloomberg said this week Microsoft was considering giving up some control of its UK cloud gaming business to convince regulators, citing people familiar with the matter.
A British court is set to hear the claims the companies are seeking to be lifted from the CMA’s injunction on Wednesday.
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Original title:FTC Loses Appeal Bid to Block Microsoft-Activision Deal (3)(excerpt)
2023-07-15 01:42:43
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