This morning we learned that Microsoft has won its preliminary injunction against the Federal Trade Commission over its deal to acquire Activision Blizzard for $68.7 billion. The court case, which took place last month, featured a brutal back-and-forth over the course of multiple days.
Microsoft Wins Court Case Against FTC Over The Acquisition Of Activision Blizzard
Judge Corley listened to top executives from Microsoft and key players from both sides. After the hearing, the Judge has ruled in favor of Microsoft.
While Microsoft is not out of the woods yet, this is a huge win in favor of the deal going through. This now paves the way for both companies to close the deal ahead of its July 18 deadline.
Earlier this year, Microsoft lost its battle against the UK’s Competition Markets Authority (CMA), which will be having another round of hearings later this month to appeal the decision potentially.
Judge Corley has a 53-page document regarding her decision,
“This Court’s responsibility in this case is narrow. It is to decide if, notwithstanding these current circumstances, the merger should be halted—perhaps even terminated—pending resolution of the FTC administrative action. For the reasons explained, the Court finds the FTC has not shown a likelihood it will prevail on its claim this particular vertical merger in this specific industry may substantially lessen competition. “
Head of Xbox, Phil Spencer, has already made a public statement on the hearing shortly after the verdict went public.
While the deal hasn’t closed quite yet, it’s likely the FTC will back off of the case now that it has lost its preliminary injunction and the stage is set for Activision to be purchased by Microsoft.
It’s been a grueling few years of back and forth with this deal, but it looks like it will all be over soon.