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July 11 (UPI) — In a significant ruling, a federal judge denied the Federal Trade Commission’s motion for a temporary injunction, which aimed to prevent Microsoft from acquiring video game publisher Activision Blizzard. The court’s decision allows the software giant to proceed with its planned acquisition.
The court ruling rejected the FTC’s claim and determined that the necessary proof to establish a substantial reduction in competition was not provided.
The FTC has the option to appeal the ruling to a federal court, while the transaction must also receive clearance from Britain’s Competition and Markets Authority.
Under the terms of the deal, Microsoft plans to acquire Activision Blizzard for $95 per share. Activision Blizzard, founded in 2008 and known for its popular Call of Duty video game franchise, will become part of Microsoft’s portfolio.
The court’s decision was based on the conclusion that the merger would not significantly lessen competition in the specific industry. In fact, it highlighted the potential for increased consumer access to Call of Duty and other content from Activision Blizzard.
Following the news, shares of Activision Blizzard rose by over 11% to $91.82.
In response to the ruling, Microsoft President Brad Smith expressed gratitude to the San Francisco court and emphasized the company’s commitment to address regulatory concerns in a collaborative manner.
