Following the Federal Trade Commission’s (FTC) attempt to block the transaction, Microsoft has been given permission by a US court to move forward with its purchase of video game company Activision Blizzard. A refusal order was formally issued by California Judge Jacqueline Scott Croley refusing the preliminary injunction.
The court’s ruling now permits Microsoft to complete the acquisition of Activision Blizzard before the deadline of July 18th. The FTC continues to sue Microsoft for antitrust violations, which adds another level of complication to the matter.
Early in 2022, Microsoft revealed its plan to pay an astounding $69 billion to acquire Activision Blizzard, a well-known developer of video games. This action attracted a lot of attention in the gaming industry and has substantial ramifications for both businesses and the sector’s future.
Famous video game franchises including Call of Duty, World of Warcraft, and Diablo are produced by Activision Blizzard. The acquisition of these assets would greatly increase Microsoft’s ability to compete in the gaming industry.
The FTC raised objections to the purchase, claiming that if approved, Microsoft would be able to stifle competition in the console and gaming services industries. As a result, a preliminary injunction was issued in an effort to stop the acquisition.
Microsoft has finally obtained court approval to move forward with the acquisition of Activision Blizzard at the price agreed upon in 2022, despite the antitrust case and the FTC’s efforts. With this permission, Microsoft’s aspirations for the gaming sector have advanced significantly.
The United Kingdom has also attempted to obstruct the acquisition, so the problem is still not totally resolved. With a hearing set for July 28th, Microsoft is expecting a ruling on this matter. The outcome of the UK’s judgment will also have an impact on how the acquisition works out overall.
Microsoft’s intention to strengthen its competitive position and influence inside the gaming industry is demonstrated by the recent court clearance. Both firms stand to gain greatly from the acquisition of Activision Blizzard, which also has the potential to completely alter the game industry.