Microsoft-Activision US$69 billion deal back on track after US court win
- The US Federal Trade Commission had requested the transaction be halted pending an investigation on competition concerns
- Decision hands a major victory to Microsoft and allows it to close its purchase of Activision, the maker of Call of Duty, as planned
A US federal judge on Tuesday resurrected Microsoft’s US$69 billion buyout of video gaming giant Activision Blizzard by refusing to allow the temporary suspension of the long delayed deal.
The US Federal Trade Commission, the Washington-based antitrust enforcer, requested that the blockbuster transaction be halted pending an investigation on competition concerns.
But Judge Jacqueline Scott Corley said “the FTC has not shown a likelihood it will prevail on its claim.”
Microsoft’s Activision acquisition temporarily blocked by US judge
Microsoft was set for an appeal hearing in London later this month, but the company on Tuesday said it would consider further ways to satisfy the CMA.
“We stand ready to consider any proposals from Microsoft to restructure the transaction in a way that would address the concerns,” a CMA spokesperson said.
The FTC could also continue to pursue its case, though the judge’s ruling weakened the legal foundations of that prospect considerably.
“We’re grateful to the Court in San Francisco for this quick and thorough decision and hope other jurisdictions will continue working towards a timely resolution,” said Microsoft President Brad Smith.
“As we’ve demonstrated consistently throughout this process, we are committed to working creatively and collaboratively to address regulatory concerns,” he added.
The FTC in December sued to block the transaction with Activision Blizzard over concerns that it would stifle competition.
Instead of showing harm to competition, “to the contrary, the record evidence points to more consumer access to Call of Duty and other Activision content,” she said.