Smooth Sale: Activision Blizzard Clears Path for Microsoft Acquisition
Microsoft’s Acquisition of Activision Blizzard Allowed to Proceed as US Court Rejects FTC’s Application
In a recent development, the US Federal Trade Commission’s (FTC) bid to prevent technology giant Microsoft from acquiring computer game company Activision Blizzard has been rejected by a federal court in San Francisco. The court ruled that Microsoft’s planned $69 billion deal to purchase Activision can proceed as planned.
Upon hearing the court’s decision, Microsoft President Brad Smith expressed gratitude for the swift resolution. He stated, “As we have consistently demonstrated throughout this process, we are committed to working collaboratively to address regulatory concerns.”
The FTC had previously applied to the court for a temporary restraining order and injunction to halt the acquisition, citing concerns about potential negative impacts on market competition. However, the court’s ruling signifies a green light for Microsoft’s acquisition of Activision Blizzard.
Interestingly, the deal has faced different fates across international borders. In April of this year, the UK Competition and Markets Authority (CMA) blocked the acquisition after conducting a review. The CMA raised concerns that the agreement between Microsoft and Activision Blizzard could reshape the future of the cloud gaming market.
On the other hand, the European Union (EU) completed its competition review and approved Microsoft’s acquisition of Activision Blizzard. To secure EU approval, Microsoft made a commitment to provide European consumers with 10 years of free cloud gaming services for Activision’s games.
Microsoft, known for its highly successful Xbox game system, had unveiled its intention to acquire Activision Blizzard, the renowned producer of popular games such as “Call of Duty” and “World of Warcraft,” back in January 2022. Despite facing regulatory hurdles, it seems the company is now one step closer to finalizing this major acquisition.
It remains to be seen how Microsoft’s acquisition of Activision Blizzard will shape the future of the technology and gaming industries. As the deal progresses, industry observers will keep a watchful eye on potential changes in market dynamics and competition. In the meantime, Microsoft and Activision Blizzard can proceed with their plans, confident in the court’s decision and EU’s approval.
