Microsoft has had to jump through multiple hurdles for its proposed $69 billion acquisition of Activision Blizzard Inc, including lawsuits and hearings about how the acquisition could affect market competition.
Now, the controversy surrounding the deal is coming to an end.
The Federal Trade Commission's request for an injunction to prevent the acquisition has been denied by Judge Jacqueline Scott Corley.
“The Court finds the FTC has not shown a likelihood it will prevail on its claim this particular vertical merger in this specific industry may substantially lessen competition. To the contrary, the record evidence points to more consumer access to Call of Duty and other Activision content. The motion for a preliminary injunction is therefore denied,” explained Judge Scott Corley, about the hearing.
Following this decision, Microsoft turned its attention to the ongoing litigation with the United Kingdom Competition Market Authority.
According to Microsoft vice chair Brad Smith, the litigation with the CMA has been paused so that the two entities can shift to focusing on negotiations.
"While we ultimately disagree with the CMA's concerns, we are considering how the transaction might be modified in order to address those concerns in a way that is acceptable to the CMA," stated Smith in an official statement.
Microsoft has reportedly even offered a divestiture to the CMA in the hopes of pushing the Activision Blizzard acquisition forward.
These developments have had the public wondering whether the $69 billion acquisition will pay off for Microsoft in the long run.
However, after news of the FTC’s request for an injunction was denied spread, Activision Blizzard Inc. saw an unexpected increase of 11.5% in shares. The immediate jump in shares indicates the beginning of many positive signs for Microsoft during the acquisition process.