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Microsoft Activision Merger Update

Microsoft Activision Merger Update

The Federal Trade Commission (FTC) has announced that it will appeal a recent court ruling that cleared the way for Microsoft to acquire Activision Blizzard. The FTC filed a notice of appeal, indicating its intention to challenge the decision made by Judge Jacqueline Scott Corley. However, the specific arguments and grounds for the appeal will

The Federal Trade Commission (FTC) has announced that it will appeal a recent court ruling that cleared the way for Microsoft to acquire Activision Blizzard. The FTC filed a notice of appeal, indicating its intention to challenge the decision made by Judge Jacqueline Scott Corley. However, the specific arguments and grounds for the appeal will be presented in the full appeal to the Ninth Circuit Court of Appeals.

Activision

The FTC’s request for a preliminary injunction was denied earlier this week by Judge Corley, which has removed the main hurdle for the planned merger between Microsoft and Activision Blizzard as the ongoing administrative case by the FTC is still in the works. The ruling stated that the FTC had not demonstrated a likelihood of prevailing in its claim that the planned merger would stifle competition in the gaming market. According to the judge the evidence pointed towards more access to Activision content for the consumer, such as popular games like Call of Duty.

With the temporary restraining order set to expire soon the FTC now seeks an emergency stay from the Ninth Circuit Court of Appeals for an extension.  With the July 18th deadline for the merger deal approaching it remains uncertain whether the appeals court will issue a ruling before then.

CMA

On the other side of the pond Microsoft also needs to worry about the UK’s Competition and Markets Authority (CMA) before finalizing the deal. The CMA previously blocked the acquisition on cloud concerns and announced that discussions with Microsoft were ongoing following Judge Corley’s ruling. The CMA cautioned that a new investigation regarding the merger may be on the horizon. While there were reports of a potential small divestiture to address cloud gaming concerns, the specifics of any potential remedies are yet to be determined. The outcome of the appeal and negotiations with the CMA will shape the future of Microsoft’s acquisition of Activision Blizzard.

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