A federal judge in San Francisco rendered a ruling in support of Microsoft and Activision Blizzard, who were aiming to conclude their agreement worth $68.7 billion by July 18. The U.S. government retains the right to submit an appeal to the appellate court against the judge's conclusion.
The Federal Trade Commission (FTC) has been denied a motion for a preliminary injunction to stop Microsoft from acquiring video game publisher Activision Blizzard, a decision which was made by a federal judge in San Francisco.However, the matter is far from resolved; the FTC can still file an appeal to a federal appellate court, and the two companies must still find a way to address the opposition of the Competition and Markets Authority in the UK. Judge Jacqueline Scott Corley wrote in her recent ruling that it was not her responsibility to halt the merger, but rather decide if the FTC had a likelihood of success in their claim that the deal would substantially lessen competition. As the evidence suggested that more consumer access to Call of Duty and other Activision content would result, the motion for the preliminary injunction was denied.Following the decision, Activision Blizzard's shares rose to a session and 52-week high of $92.91 per share. Microsoft had previously agreed to buy the game publisher for $95 per share.Bobby Kotick, CEO of Activision Blizzard, expressed his optimism regarding the ruling and his hope that other jurisdictions would quickly resolve any remaining regulatory concerns. Microsoft President and Vice Chair Brad Smith echoed this sentiment and expressed their commitment to work collaboratively to address any further regulatory issues.The FTC had taken legal action against the merger in December, and in June requested a preliminary injunction to prevent Microsoft from closing the deal. Executives from Microsoft and Activision Blizzard testified in the five days of court hearings, alongside those from Alphabet, Nvidia and Sony.Now the companies will be turning their focus to the UK, with Microsoft and Activision Blizzard having agreed with the CMA that a stay of the litigation in the UK would be in the public interest. This story is still developing and further updates will follow.
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