A district judge allowed Microsoft to acquire Activision, denying the request for a preliminary injunction from the Federal Trade Commission (FTC). Judge Corley of the Northern District of California District Court said he was satisfied with Microsoft’s promise to keep Call of Duty available on other platforms, including the Sony Xbox and Nintendo Switch.
The legal officer’s statement said the Court did not find that the FTC demonstrates a likelihood that it will trump its claim that the merger will reduce competition. Essentially, this means that the Trade Commission is not allowed to stop the deal, although the decision can be appealed, provided the documents are filed by the end of Friday.
Judge Corley considered the 10-year parity deal that Microsoft and Sony are about to sign for Call of Duty, as well as the similar deal with Nintendo. The US company will also bring Activision’s titles to “several cloud gaming services”, which would not hurt competition in the gaming sector.
The $68.7 billion ($95.00 per share) deal has already received the green light from the European Union. A legal battle is still ongoing with the CMA (Competitions and Market Authority) in the UK, but reports indicate that both sides have decided to stay the case to negotiate cloud gaming concerns from the UK regulator.
Brad Smith, president of Microsoft, and Bobby Kotick, CEO of Activision Blizzard, both praised the court’s swift decision. In separate press releases, both said the deal will open up competition in cloud gaming instead of stifling it. It should also benefit consumers and workers, as no major layoffs are expected once the merger is complete.
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