FTC’s appeal of federal judge’s ruling allowing Microsoft get Activision Blizzard.
It’s a big win for Microsoft and brings the company one step closer to becoming a gaming powerhouse.
The FTC filed an appeal yesterday, hoping to prevent the deal from completing before the July 18 deadline.
However, U.S. District Judge Jacqueline Scott Corley, who presided over the FTC’s attempt to block the takeover, rejected the FTC’s request late on Thursday (Reuters)
Things need to move quickly, and as of now, Activision Blizzard will be removed from the Nasdaq-100 on July 17 in response to the acquisition. If the deadline is missed, Microsoft must pay Activision Blizzard $3 billion and return to the negotiating table.
Meanwhile, the UK Competition and Markets Authority (CMA) has extended the deadline for a final decision on the takeover (thanks GI.biz). That means Microsoft has more time to close the deal, and it gives the CMA more time to review Microsoft’s proposed changes to its acquisition plans.
The acquisition of Activision Blizzard would be the largest in the history of the gaming industry and give Microsoft control of some of the biggest franchises in the world, including Call of Duty, World of Warcraft and Candy Crush.
The deal raised some concerns from antitrust regulators that it could give Microsoft too much power in the industry. However, Microsoft argued that the acquisition would benefit consumers by enhancing competition and innovation.
Whether the CMA will approve the acquisition remains to be seen, but the rejection of the FTC appeal is a big sign that the deal is close to closing.
