After days of hearings and an intense deposition war, the U.S. authorities have rendered their verdict in the Activision Blizzard buyout case and the fight between Microsoft and the U.S. Federal Trade Commission (FTC).
Judge Jacqueline Scott Corley heard arguments from both sides and, in the end, tipped the scales in Microsoft's favor. Thus, the company has a clear path to complete the purchase of Activision Blizzard, at least in the United States. This is excellent news for the company, as the FTC was one of the main opponents of the deal.
Microsoft beats FTC and U.S. approves Activision Blizzard acquisition
According to details, the judge turned her back on the FTC, so she will not approve the request for a preliminary injunction to stop the acquisition of Activision Blizzard. Thus, Microsoft defeated the U.S. regulator.
"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. 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," said the authorities
While the battle is won, the FTC still has a chance to appeal the judge's decision before the end of the day. Failure to do so will clear the way for Microsoft to complete its acquisition of Activision Blizzard even this month.
It now only has to settle its outstanding issues with the UK's Competition and Authorities Commission (CMA), which decided to block the acquisition. In theory, Microsoft could complete the purchase before July 18, the deadline that was agreed to close the deal.
However, to do so, it would have to accelerate its negotiations with the CMA or even be willing to make significant business moves in the UK to complete the acquisition despite the CMA's opposition.
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