Federal Appeals Court Rules Microsoft Can Close its Activision Merger
Federal Appeals Court Clears the Way for Microsoft’s Acquisition of Activision Blizzard
In a significant setback for the Federal Trade Commission (FTC), a federal appeals court has decided not to block Microsoft (MSFT) from finalizing its $69 billion acquisition of Activision Blizzard. This ruling marks the second major defeat for the FTC this week in a case that holds considerable implications for the future of the video game industry.
The US Court of Appeals for the Ninth Circuit’s decision deals a blow to the antitrust officials who had sought an emergency injunction to halt the deal following a lower court ruling on Tuesday that allowed the acquisition to proceed.
Upon completion, the merger will position Microsoft as the world’s third-largest video game publisher, trailing only Tencent and Sony in the global gaming market. The terms of the agreement dictate that Microsoft has until July 18 to finalize the merger, although the two companies involved could mutually opt to extend the deadline if necessary.
