Microsoft: Microsoft has won FTC fight for its $69 billion deal to buy Activision Blizzard – Times of India

Microsoft Corp has won a court’s okay to move forward with its $69 billion deal to buy the gaming company Activision Blizzard Inc. The software giant has defeatedan effort by the US Federal Trade Commission to block the largest-ever gaming deal. Activision owns King, the maker of Candy Crush, and the popular Call of Duty game. The combination will vault Microsoft to the No. 3 position among global video-game companies behind China’s Tencent, the publisher of League of Legends, and game console rival Sony Corp, Microsoft had said.
Microsoft seemed to have an upper hand in the 5-day San Francisco court hearing that ended late last month. The proceeding showcased testimony by Microsoft Chief Executive Officer Satya Nadella and Activision Blizzard CEO Bobby Kotick. The duo pledged to keep Activision’s game Call of Duty available to people who play it on consoles, particularly Sony’s PlayStation, that competes with Microsoft’s Xbox.
Both companies expressed apprehension that the delay would effectively force them to abandon the takeover agreement that they signed nearly 18 months ago. Microsoft has promised to pay Activision a $3 billion breakup fee if the deal doesn’t close by July 18.
What the court ruling means
The decision by Judge Jacqueline Scott Corley in San Francisco means that Microsoft can seek to close its merger with Activision ahead of a July 18 deadline everywhere except for the UK, which rejected the deal in May. In a decision, Scott Corley denied the FTC’s preliminary injunction, which sought to block the deal on the grounds it would harm gamers.
Microsoft has said it struck the deal to acquire Activision in order to add mobile games — an area where it has virtually no presence. Activision owns King, the maker of Candy Crush. The combination will vault Microsoft to the No. 3 slot among global video-game companies behind China’s Tencent Holdings Ltd., the publisher of League of Legends, and game console rival Sony Corp, Microsoft had said.
What FTC said on the ruling
“We are disappointed in this outcome given the clear threat this merger poses to open competition in cloud gaming, subscription services, and consoles. In the coming days we’ll be announcing our next step to continue our fight to preserve competition and protect consumers,” FTC spokesman Douglas Farrar said in an email to Bloomberg. The lawsuit was part of an effort by FTC Chair Lina Khan to more aggressively scrutinise mergers, particularly those by the biggest tech platforms.
(With agency inputs)