Microsoft Wins FTC Appeal Challenging $69B Activision Blizzard Deal

Microsoft Corp. (MSFT) bagged a win on Wednesday against the U.S. Federal Trade Commission’s (FTC) appeal challenging the Windows maker’s acquisition of video game developer Activision Blizzard.

Microsoft’s stock was down 0.20% at the time of writing.

The U.S. Court of Appeals for the Ninth Circuit affirmed a district court’s rejection of a motion by the FTC seeking an injunction against Microsoft’s $69 billion acquisition of Activision Blizzard.

The appeals court found that the district court’s decision was based on the correct application of legal standards and was not based on erroneous findings. The court also found that the FTC failed to demonstrate that its appeal had the requisite likelihood of success on the merits.

It said that the FTC failed to raise serious questions about the possibility of Microsoft’s acquisition of Activision Blizzard, resulting in a substantial reduction in competition within the video game industry.

The Microsoft-Activision Blizzard deal closed in 2023 and was subject to regulatory scrutiny in several major markets globally, including the UK, European Union, South Korea, and China, among others.

The deal, announced in 2022, is Microsoft’s biggest acquisition ever, eclipsing its LinkedIn purchase for $26.2 billion. It is also the biggest acquisition ever in the video game industry.

Earlier, the UK regulator, the Competition and Markets Authority (CMA), blocked the deal, citing antitrust concerns. However, Microsoft and CMA arrived at a compromise by selling Activision’s game streaming rights to rival Ubisoft Entertainment.

The regulator hailed the compromise as a “gamechanger.”

Microsoft’s acquisition of Activision Blizzard aims to help the company bolster its gaming division’s growth in mobile, console, PC, and cloud gaming.

Microsoft’s shares have gained 2.57% year-to-date and 5.59% over the past 12 months.

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