Microsoft can move ahead with record $69 billion acquisition of Activision Blizzard, judge rules

U.S. District Judge Jacqueline Scott Corley said in a ruling that the merger deserved scrutiny, noting it could be the largest in the history of the tech industry. But federal regulators were unable to show how it would cause serious harm and wouldn’t likely prevail if they took it to a full trial, she wrote.

Both companies suggested that such a delay would effectively force them to abandon the takeover agreement they signed nearly 18 months ago. Microsoft promised to pay Activision a $3 billion breakup fee if the deal doesn’t close by July 18.“We are disappointed in this outcome given the clear threat this merger poses to open competition in cloud gaming, subscription services, and consoles,” FTC spokesperson Douglas Farrar said in a prepared statement.

Corley, herself a Biden nominee, expressed skepticism about the FTC’s case during the proceedings, particularly about the hypothetical harms caused if Microsoft were to remove Call of Duty from rival platforms or offer a subpar experience on competing consoles.

Microsoft valued the deal at $68.7 billion when it announced the acquisition in early 2022, “inclusive of Activision Blizzard’s net cash,” though Microsoft agreed to pay $95 in cash for each share of the gamemaker, closer to $75 billion.Shares of Activision Blizzard Inc. jumped more than 11% Tuesday on the ruling, a high for the year.A number of other countries and the European Union have approved the Activision Blizzard takeover, but it still faces opposition from the U.K.

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