Groundbreaking International Greenlight: Microsoft's Acqusition of Activision Blizzard Gets Green Signal!
Microsoft's acquisition of Activision Blizzard, valued at $69 billion, continues to gain global support as another country gives its official thumbs up to the deal
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As Microsoft's acquisition of Activision Blizzard nears its conclusion, another country has formally approved the pending $69 billion deal. While this particular nation is just one of several that have given the green light to Microsoft's plan to finalize the deal in the near future, the announcement comes at a time when the outcome appears almost certain.
On Tuesday, July 11, Judge Jacqueline Scott Corey of the US District Court of Northern California ruled in favor of Microsoft, dismissing a preliminary injunction filed by the Federal Trade Commission (FTC). In her decision, Judge Corey determined that the FTC failed to provide sufficient evidence that the acquisition would hinder competition, and that the evidence presented was actually contradictory to their argument. Additionally, Judge Corey stated that Microsoft's acquisition of Activision Blizzard would promote competition and pointed to Microsoft's commitment to bringing the Call of Duty franchise to Nintendo systems as evidence to support her ruling.
The government of Turkey announced its approval of Microsoft's acquisition on July 13. Lulu Cheng Meservey, Activision Blizzard's COO and EVP of Corporate Affairs, revealed the news on Twitter. Meservey described Turkey's approval as a thoughtful decision and emphasized the benefits the acquisition would bring to consumers and competitors. On the same day, the FTC appealed the district court's decision to deny its preliminary injunction to the US Ninth Circuit Court of Appeals. Microsoft and some social media users expressed disapproval of the FTC's efforts to hinder the deal. The Ninth Circuit's decision on the appeal has not been determined at this time.
However, Microsoft still faces an important obstacle in the upcoming days. Following the FTC's defeat, the Competition and Markets Authority (CMA) in the United Kingdom has opted to renegotiate a deal with Microsoft. This has effectively halted all ongoing litigation against the tech giant regarding its alleged monopoly of cloud-based gaming services in the UK. In late April, the UK's CMA voted to block the acquisition deal based on these grounds, which was criticized by British officials. The CMA has until August 29 to reach a decision.
The pending acquisition by Microsoft may finally conclude soon, following the approval of the deal by Turkish officials and the increase in Activision Blizzard's stock after the FTC's court defeat. The consequences of these ongoing negotiations are yet to be seen.
