FTC Loses Latest Bid to Halt Microsoft-Activision Merger
Appeals court ruling clears path for the $75 billion acquisition to close while litigation continues Microsoft CEO Satya Nadella has said the software giant will continue to make Activision games available on other platforms once it acquires the company. Photo: Noah Berger/Associated Press By Sarah E. Needleman and Jan Wolfe Updated July 14, 2023 8:20 pm ET An appeals court on Friday denied a last-ditch bid by the Federal Trade Commission to halt Microsoft’s planned $75 billion acquisition of videogame publisher Activision Blizzard. In a brief order, the Ninth Circuit Court of Appeals rejected the FTC’s request for a court order that would have blocked Microsoft and Activision from merging while the agency ap
Microsoft CEO Satya Nadella has said the software giant will continue to make Activision games available on other platforms once it acquires the company.
Photo: Noah Berger/Associated Press
An appeals court on Friday denied a last-ditch bid by the Federal Trade Commission to halt Microsoft’s planned $75 billion acquisition of videogame publisher Activision Blizzard.
In a brief order, the Ninth Circuit Court of Appeals rejected the FTC’s request for a court order that would have blocked Microsoft and Activision from merging while the agency appeals a July 11 decision by a trial court judge.
Friday’s order helps clear the way for Microsoft and Activision to close the merger, and puts pressure on the FTC to drop its appeal of the July 11 ruling.
In the July decision, U.S. District Judge Jacqueline Scott Corley said the agency hadn’t shown that Microsoft’s ownership of Activision titles, including the hit shooter-game series “Call of Duty,” would hurt competition in the console or cloud-gaming markets.
The FTC declined to comment.
“This brings us another step closer to the finish line in this marathon of global regulatory reviews,” said Microsoft President and Vice Chair Brad Smith.
The companies set a deadline to finish the merger by July 18. While the deal still faces opposition in the U.K., Microsoft and Activision received a shot in the arm earlier this week when the country’s Competition and Markets Authority said it would consider proposals for a restructured deal, which would trigger a new merger investigation. The regulator didn’t say how long such an investigation would take.
Meanwhile, Microsoft and Activision could agree to extend the deal’s deadline. Analysts say it is also possible that Activision will seek to renegotiate for a higher price.
Microsoft announced its plans to buy Activision in January 2022 and valued the deal at $69 billion after adjusting for the videogame publisher’s net cash. The companies secured regulatory approval in Europe, China and other markets but hit roadblocks in the U.S. and the U.K.
If Microsoft can punch through the last barriers and finish the deal, the acquisition will give a boost to its videogaming business and mark a victory for its efforts to charm agencies that have become more stringent about how they review big tech deals.
Write to Sarah E. Needleman at [email protected] and Jan Wolfe at [email protected]
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