Microsoft-Activision $69-Billion Deal To Face US FTC Appeal, President Brad Smith Says Company Will Oppose Attempts To Delay Acquisition

Smith expressed disappointment in the FTC's decision to continue pursuing what he considers a weak case.

The recent court decision granting Microsoft permission to proceed with its acquisition of Activision Blizzard, valued at $69 billion, has been met with an announcement from the US Federal Trade Commission (FTC) stating their intention to appeal the ruling. Judge Jacqueline Scott Corley of the United States District Court for the Northern District of California denied the FTC's request for a preliminary injunction on Tuesday. The injunction, if granted, would have halted the completion of the $69-billion deal until the FTC's internal court had an opportunity to evaluate whether the merger would negatively impact competition within the gaming industry.

In response to the court's decision, the FTC filed an appeal on Wednesday, aiming to present their case to the appeals court and demonstrate that the ruling was erroneous.

However, there is a restraining order currently in effect, set to expire on Friday, July 14. Unless the appeals court extends the order, Microsoft will have the ability to proceed and finalise the acquisition over the upcoming weekend.

Microsoft's president, Brad Smith, released a statement to The Verge expressing his satisfaction with the District Court's ruling. He emphasised that the acquisition would benefit both competition and consumers, expressing disappointment in the FTC's decision to continue pursuing what he considers a weak case. Smith assured that Microsoft would oppose any further attempts to delay the progression of the acquisition.

Meanwhile, in the United Kingdom, legal proceedings involving Microsoft and Activision Blizzard have been put on hold by the country's competition watchdog. The purpose of this pause is to facilitate negotiations between the parties, aiming to reach an agreement regarding the proposed merger. This pause comes following the clearance of the deal in the United States.

Pending the outcome of the FTC's potential appeal, the recent ruling removes one of the primary barriers hindering the completion of the merger.