Acquisition Victory: Microsoft Secures Deal to Acquire Activision Blizzard
In a Major Court ruling, Microsoft Wins Green Light for Activision Blizzard Acquisition
After an intense legal battle, a California judge has given Microsoft the nod to finalize its acquisition of Activision Blizzard, dismissing the Federal Trade Commission (FTC)'s request for a preliminary injunction. This decision comes amidst an ongoing antitrust case filed by the FTC.
Judge Jacqueline Scott Corley's ruling acknowledges the significant scale of Microsoft's acquisition of Activision, deeming it the largest in tech history. However, she emphasizes the need for scrutiny, ultimately concluding that Microsoft's commitments, such as maintaining Call of Duty on PlayStation for a decade, ensuring parity with Xbox, expanding the game to Nintendo Switch, and agreements to bring Activision's content to various cloud gaming services, are sufficient.
The judge stated that the FTC failed to demonstrate a likelihood of prevailing in its claim that the merger would substantially lessen competition. Instead, the evidence points to increased consumer access to Call of Duty and other Activision content.
Microsoft Committed to Multi-Platform Expansion
Judge Corley's decision aligns with Microsoft's commitments to multi-platform availability, even amidst the FTC's challenges to Microsoft's cloud agreements. The ruling recognizes the concept of Nintendo Switch as part of the console market, while also acknowledging the FTC's argument that PCs should not be included.
Microsoft President Brad Smith expressed gratitude for the court's prompt and thorough ruling. Xbox Head Phil Spencer, a key witness in the trial, tweeted his appreciation, stating that the evidence presented demonstrated the benefits of the Activision Blizzard deal for the gaming industry. Activision Blizzard CEO Bobby Kotick also welcomed the ruling, highlighting the merger's potential to foster competition and empower consumers.
The FTC, however, has expressed disappointment and hinted at further action to preserve competition and protect consumers. The FTC now has until July 14th to appeal Judge Corley's decision. Given the regulator's decision not to appeal a similar court ruling in Meta's acquisition of Within, it remains uncertain if the FTC will continue its case against the acquisition by Microsoft of Activision Blizzard.
U.K. Regulator's Opposition Complicates Matters
While the California ruling allows Microsoft to proceed with the acquisition before the 18 deadline, the deal's completion hinges on negotiations with the UK Competition and Markets Authority (CMA). The UK regulator's opposition to the acquisition since April has prompted the FTC to seek an injunction initially.
However, both Microsoft and the CMA have agreed to pause their legal battle in the UK and explore modifications to address the CMA's concerns regarding cloud gaming. This move suggests a potential resolution in the UK, crucial for Microsoft's ability to proceed without complications.
Political Context of Big Tech Mergers
FTC Chair Lina Khan, who has been pursuing Big Tech companies since assuming her role in 2021, faces another potential setback if the court order remains unchallenged. The outcome of the FTC's decision will become clearer in the days leading up to July 14th.
In light of increased political scrutiny of big tech mergers under the Biden administration, this case may fuel legislative proposals to empower regulators or update antitrust laws.
Enrichment Data:
The current status of the FTC's antitrust case against Microsoft's acquisition of Activision Blizzard has seen a significant legal setback. On May 7-8, 2025, the U.S. Ninth Circuit Court of Appeals ruled against the FTC's challenge to block the $69 billion deal, effectively upholding a lower court's denial of the FTC’s request for a preliminary injunction to stop the acquisition. The court found that the FTC failed to demonstrate a likelihood of success on the merits of its antitrust claims, allowing Microsoft's acquisition of Activision Blizzard, completed in 2023, to stand[1][3][4][5]. Despite this major defeat, the FTC retains avenues through administrative proceedings and policy efforts to address antitrust concerns arising from the deal[1][3].
The ruling from Judge Jacqueline Scott Corley regarding Microsoft's acquisition of Activision Blizzard, which deems it the largest in tech history, recognized both the need for scrutiny and Microsoft's commitments to making Activision's content available on multiple platforms, including Nintendo Switch.
Microsoft's President Brad Smith expressed gratitude for the court's ruling, while the FTC has hinted at further action to preserve competition and protect consumers, making July 14th a crucial date to determine if they will appeal the decision. The completion of the deal, however, hangs on negotiations with the UK Competition and Markets Authority.
