The deal between Microsoft and Activision Blizzard has been a nail-biter, especially since it is arguably one of the biggest deals in tech sector history. As Microsoft won its battle with the FTC, the agency tried a last attempt at stopping the acquisition, but the court denies its appeal.
FTC Has Lost
The Federal Trade Commission made it its mission to prevent Microsoft from acquiring the video game company, but after a month of legal proceedings to request a preliminary injunction, the judge ultimately sided with Microsoft and allowed its purchase of Activision Blizzard.
Not accepting defeat, the FTC threw one last attempt by appealing the decision, but that too was rejected by Judge Jacqueline Scott Corley and the Ninth Circuit Court of Appeals, throwing the agency's last chance way at stopping the tech giant's merger.
Microsoft Vice Chair and President, Brad Smith expressed that they "appreciate the Ninth Circuit's swift response denying the FTC's motion to further delay the deal," adding that it brings Microsoft one step closer to finishing the "marathon of global regulatory reviews."
Although, Microsoft still has the Competition and Markets Authority (CMA) to deal with since the deal is still blocked in the UK, as mentioned in The Verge. Without that being settled, the software giant might face problems in closing the deal without a hitch.
The CMA also believes that the deal would create an imbalance in the competition within the cloud gaming market. Microsoft is still trying to figure out a way to modify the deal in order to address the concerns of the CMA regarding cloud gaming.
The agency even warned that the tech giant's acquisition of Activision Blizzard could lead to a new merger investigation. A notice of extension was issued for the overall investigation. These might cause further complications for Microsoft.
Failure to go through with the deal could cost Microsoft as the deadline on July 18th is fast approaching. Missing the proposed deadline would result in the software company paying $3 billion in breakup fees as well as renegotiating terms with Activision.
Judge Gives Microsoft the Green Light
One of the biggest wins that the tech giant achieved was when Judge Jacqueline Scott Corley denied the FTC's request for a preliminary injunction. Smith tweeted that he was thankful for the quick and thorough decisions of the San Francisco Court.
The FTC immediately expressed its disapproval of the outcome as the agency's spokesperson, Douglas Farrar, stated that the merger poses a threat to "open competition in cloud gaming, subscription services, and consoles."
Upon hearing about the appeal, Smith stated that the District Court's ruling makes it clear that the acquisition is "good for both competition and consumers," and that they were disappointed that the FTC continues to pursue a "demonstrably weak case," as mentioned in Polygon.
The only obstacle left now is the UK block. Microsoft is likely doing everything in its power to resolve the issue in order to finally close its deal with Activision Blizzard, which has proven to be a difficult task for the tech giant.
