Judge rejects FTC’s bid to halt $69B Microsoft-Activision merger.

Judge Rules in Favor of Microsoft’s Acquisition of Activision Blizzard

A judge has made a significant ruling in the ongoing battle between the Federal Trade Commission (FTC) and Microsoft over the acquisition of video game company Activision Blizzard. The FTC had been trying to prevent the $69 billion deal from going through, but Judge Jacqueline Scott Corley in San Francisco has now given the green light to the merger.

“This court’s responsibility in this case is narrow. It is to decide if, notwithstanding these current circumstances, the merger should be halted — perhaps even terminated — pending resolution of the FTC administrative action,” Corley wrote.

After hearing arguments from both sides over the course of five days, Judge Corley decided to reject the FTC’s emergency injunction. The FTC had expressed concerns about Microsoft potentially gaining a monopoly in the gaming industry if the deal proceeded.

“For the reasons explained, the court finds the FTC has not shown a likelihood it will prevail on its claim this particular vertical merger in this specific industry may substantially lessen competition,” the ruling read. “To the contrary, the record evidence points to more consumer access to Call of Duty and other Activision content. The motion for a preliminary injunction is therefore DENIED.”

This ruling comes just in time, as the purchasing deadline for Microsoft and Activision is only a week away. Microsoft had proposed the acquisition to expand its library of games, including mobile titles.

Microsoft President and Vice Chairman Brad Smith expressed gratitude for the court’s decision and hopes for a timely resolution in other jurisdictions. He stated, “As we’ve demonstrated consistently throughout this process, we are committed to working creatively and collaboratively to address regulatory concerns.”

Activision Blizzard CEO Bobby Kotick also welcomed the ruling, emphasizing that the merger will benefit consumers and workers and foster healthy competition in the rapidly growing gaming industry.

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