Judge Sides with Microsoft, Allows Activision Blizzard Acquisition

The Microsoft and Activision Blizzard deal has been the most anticipated and arguably the biggest acquisition in the tech world, so much so that the FTC proposed to block it due to its potential effects on the console gaming market. It appears that the court believes Microsoft should go through with it after all.

Microsoft Activision Acquisition
(Photo : Jakub Porzycki/NurPhoto via Getty Images)

Judge Approves the Acquisition

In a few days, Microsoft will finally be able to close its deal with Activision Blizzard as the court sides with the tech giant over the Federal Trade Commission. Judge Jacqueline Scott Corley, upon hearing both sides of the argument, decides to deny the FTC's request for a preliminary injunction.

Microsoft President Brad Smith tweeted that they are grateful to the Court in San Francisco for the quick and thorough decisions. Smith expressed that they "hope other jurisdictions will continue working towards a timely resolution."

The involved video game company's CEO, Bobby Kotick, was also glad about the California judge's decision, saying that the merger will benefit both consumers and workers. FTC, obviously, wasn't happy about the decision of the judge.

The agency's spokesperson Douglas Farrar says that they are "disappointed in this outcome given the clear threat this merger poses to open competition in cloud gaming, subscription services, and consoles," as mentioned in The Verge.

Despite the decision, the FTC is not backing down as it is still planning what to do next. Farrar says that they will be announcing their next step in the coming days to continue the fight to "preserve competition and protect consumers."

Although, Microsoft is not out of the woods just yet. The company still has to deal with the UK block. The judge says that Microsoft can go through with the deal for $68.7 billion before the July 18th deadline, but only if it closes around the UK.

There's also the Competition and Markets Authority, which attempted to delay the appeal before amidst the FTC vs Microsoft hearing. Judge Jacqueline Scott Corley says that negotiation with the CMA is part of the condition before Microsoft can close the deal this July.

Read Also: CMA Blocks Microsoft-Activision Acquisition Deal in Final Decision

What Happens to the Activision Games?

The concern with the deal in the first place is that Microsoft's acquisition may greatly affect the console gaming market with potential decisions like making Call of Duty (CoD) exclusive to Xbox. However, the tech giant says that will not happen.

As mentioned in Fast Company, Microsoft Gaming CEO says that they value their relationship with Sony and that they will keep the game on PlayStation. The company has already committed to writing that it will keep the game on PlayStation for ten years.

In addition to that, Call of Duty will also be brought to Nintendo Switch consoles, as well as accept agreements to bring Activision content to several cloud gaming services. In fact, the court sees the deal as a way for more consumers to access CoD and other content.

Although Call of Duty is the most famous game developed by the video game company, there are also other famous titles that it has created like the Overwatch franchise, the Diablo franchise, Crash Bandicoot, and even the Candy Crush Saga.

Related: Sony Accidentally Reveals the Cost of Creating Its Games

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