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Microsoft's $69-Billion Activision Acquisition Gets US Judge Nod

Microsoft's intention behind acquiring Activision is to expand its presence in the mobile gaming sector.

The potential deal between Microsoft and Activision, worth $69 billion, is nearing its completion before the deadline of July 18. A US judge ruled in favour of the acquisition, dismissing the Federal Trade Commission's (FTC) request for a preliminary injunction. However, the FTC has the opportunity to appeal the decision until midnight on July 14. The deal is expected to be finalised in all regions except the UK, where it was vetoed in May, within a week.

Microsoft's intention behind acquiring Activision is to expand its presence in the mobile gaming sector, where it currently has minimal influence. Activision owns highly popular games such as Candy Crush and Call of Duty, along with their respective developers. If the deal goes through, it will propel Microsoft to the third position among the world's largest video game companies, trailing only China's Tencent and its game console competitor Sony.

Although the deal has received approval from several jurisdictions, it has faced opposition from the US Federal Trade Commission and the Competition and Markets Authority in the UK. Activision Blizzard CEO Bobby Kotick previously indicated that the company might abandon the acquisition if the FTC succeeded in obtaining a ruling to halt the deal.

Government entities argue that the proposed transaction could harm gamers and result in reduced competition in certain areas. The FTC asserts that the significant acquisition would grant Microsoft exclusive access to Activision games, potentially marginalising Nintendo and Sony Group.

While Microsoft has already obtained antitrust approval from the European Union for its $69 billion bid, it has encountered resistance from Canada and the UK. In April, the British Competition and Markets Authority (CMA) blocked the takeover, and Microsoft plans to appeal this decision later in the month. Requests for an extension until October have been denied.

Furthermore, Canada's Department of Justice recently concluded that Microsoft's acquisition of Activision Blizzard, the maker of "Call of Duty," is likely to reduce competition in certain aspects of the gaming industry.

(With inputs from agencies)

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