Shares of Activision Blizzard surged by 10% on Tuesday after a judge rejected the Federal Trade Commission’s request for a preliminary injunction to block Microsoft’s acquisition of the gaming company. This decision resulted in Activision Blizzard’s stock reaching a 52-week high of $92.91 per share, marking the largest increase since the acquisition was announced on January 18th, 2022. It’s worth noting that this closing price is the highest Activision Blizzard shares have reached since July 2021.
Microsoft had agreed to purchase Activision Blizzard for $68.7 billion, or $95 per share. However, the deal has faced opposition both domestically and internationally due to concerns about potential competition limitations. Despite this, the U.S. District Court for the Northern District of California ruled in favor of the companies on Tuesday.
Judge Jacqueline Scott Corley wrote in her decision, “The Court finds the FTC has not shown a likelihood it will prevail on its claim that this specific vertical merger in the industry will substantially reduce competition.” While this ruling is a positive development, there are still obstacles to overcome. The FTC has the option to appeal the decision to the U.S. Court of Appeals for the 9th Circuit, and Microsoft and Activision Blizzard must also address opposition from the Competition and Markets Authority in the United Kingdom.
Activision Blizzard CEO Bobby Kotick expressed optimism about the ruling and stated, “We’re confident that today’s decision indicates a path towards obtaining regulatory approval worldwide, and we are ready to collaborate with UK regulators to address any remaining concerns so that our merger can be finalized promptly.”
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