A California judge has ruled in favor of Microsoft's acquisition of Activision Blizzard, rejecting the Federal Trade Commission's (FTC) request for a preliminary injunction.
The decision allows Microsoft to proceed with the merger, which is subject to intense scrutiny from the competition watchdog.
Judge Corley's ruling acknowledged the size and importance of the acquisition but ultimately found that the FTC had not demonstrated a likelihood of prevailing in its claim that the merger would substantially lessen competition.
The ruling allows Microsoft to proceed with the Activision Blizzard acquisition before the July 18th deadline. However, the company must either close the deal outside the UK or negotiate a remedy with the Competition and Markets Authority (CMA), as the UK regulator had previously blocked the US$69 billion acquisition. Microsoft's appeal of that decision is scheduled to commence on July 28th.
Microsoft president Brad Smith expressed gratitude to the court but added that the company’s focus is turning back to the UK.
Our statement on the mutual request with the CMA for a pause of our appeal in the UK: pic.twitter.com/8Aky2IJjxS
— Brad Smith (@BradSmi) July 11, 2023
The FTC has the opportunity to appeal Judge Corley's decision until July 14.
Activision shares shot 10.5% higher following the news, while Microsoft was trading around 0.3% lower.
Contact Angela at angela@proactiveinvestors.com
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