Microsoft Wins Round in Fight to Acquire Activision Blizzard

A federal judge has ruled that Microsoft can move forward with its $69 billion acquisition of Activision Blizzard, a major victory for the tech giant in its ongoing legal battle with US regulators.

In a 53-page ruling, US District Judge Jacqueline Scott Corley said that the FTC had not shown that it was likely to succeed on its assertion that the combined company would likely pull Call of Duty from Sony PlayStation, or that its ownership of Activision content would substantially lessen competition in the video game library subscription and cloud gaming markets.

The ruling is a major setback for the FTC, which had been seeking to block the merger on antitrust grounds. The agency had argued that the deal would give Microsoft too much control over the video game industry and could lead to higher prices and less innovation for consumers.

Microsoft, however, had argued that the deal would actually benefit consumers by allowing it to invest more in new games and services. The company also said that it would not restrict Call of Duty from being available on other platforms after the deal closes.

The ruling is a significant victory for Microsoft, but it is not the end of the battle. The FTC could still appeal the decision to the Ninth Circuit Court of Appeals. And even if the deal is ultimately approved, it could still face scrutiny from regulators in other countries.

What the Ruling Means for the Video Game Industry

The ruling is a major victory for Microsoft and could have a significant impact on the video game industry. The deal would give Microsoft control over some of the most popular video game franchises in the world, including Call of Duty, World of Warcraft, and Candy Crush. This could give Microsoft a major advantage in the battle for market share.

However, the ruling could also lead to higher prices for consumers. If Microsoft is able to raise prices for Call of Duty or other Activision games, it could make it more difficult for gamers to afford to play these games.

The ruling is also a setback for the FTC, which has been struggling to block major mergers in recent years. The agency has been criticized for being too lenient on big tech companies, and the ruling could make it more difficult for the FTC to block future mergers.

What’s Next?

The FTC could still appeal the ruling to the Ninth Circuit Court of Appeals. And even if the deal is ultimately approved, it could still face scrutiny from regulators in other countries.

If the deal is approved, Microsoft will be able to move forward with its plans to integrate Activision into its business. This could lead to new games and services from Microsoft, as well as job cuts at Activision.

The ruling is a major victory for Microsoft, but it remains to be seen how it will ultimately impact the video game industry.