Key takeaways
- A federal judge denied an FTC request for an injunction restraining Microsoft's purchase of Activision Blizzard.
- The court ruled that the FTC is unlikely to prevail in the efforts to shut down the deal on antitrust grounds.
- The FTC could still appeal, and Microsoft is also negotiating with UK regulators to get approval there.
A federal judge helped Microsoft (MSFT) to complete its acquisition of Activision Blizzard (ATVI) for $68.7 billion.
Judge Jacqueline Scott Corley in San Francisco denied a Federal Trade Commission (FTC) motion seeking an injunction to block the deal due to antitrust concerns. games and other Activision content.
However, the decision does not mean not that the purchase can still go ahead. The FTC can take the case to the Ninth U.S. Circuit Court of Appeals, and Microsoft is negotiating with UK regulators to get approval there. The FTC said it would announce its next steps in the coming days.
Both companies welcomed the decision.
“We are optimistic that the Today's decision clears the way for full regulatory approval,” Activision CEO Bobby Kotick said in a memo to employees.
Activision Blizzard shares jumped more than 9% on their highest level in two years after the news, while Microsoft shares rose 0.2%.
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Source: investopedia.com
