The US Federal Trade Commission’s (FTC) attempt to block the biggest-ever deal in the video game industry has been stalled after Microsoft Corp. received court approval to buy Activision Blizzard Inc. for $69 billion.
The company signed a deal that is $25,000 million higher than the deal Elon Musk reached when he bought Twitter for $40,000 million.
Judge Jacqueline Scott Corley of San Francisco noted Microsoft will be able to complete the merger with Activision Studio before July 18. In all jurisdictions except the UK, which was the only place to veto the deal in May.
According to Microsoft, the goal of the deal will be to allow more distribution in games for mobile devices, as studio King owns it. Creator of Candy Crush.
With this alliance, Microsoft is one of the world’s video game companies, League of Legends publisher Chinese Tencent Holdings Ltd. and its console rival Sony Corp. will be in third place.
According to Microsoft president Brad Smith, the San Francisco court’s decision should be enforced in other jurisdictions. and the firm will continue to work to reach a timely and positive solution.
“As we have consistently demonstrated throughout this process, we are committed to working creatively and collaboratively to address regulatory concerns,” the executive said.
The Federal Trade Commission tried to block the purchase temporarily and spent five days with expert interviews and statements from both parties to determine the potential monopoly the purchase would cause.
The judge’s decision now allows Microsoft to close its deal with Activision Blizzard only if the company does so.Before July 18, the FTC completes its own investigation.
Also, the company must be willing to shut down in the UK or the Competition and Markets Authority (CMA) must be willing to negotiate some sort of remedy.
The FTC will now have the power to appeal Judge Corley’s decision until 11:59 PM.
But if the injunction is approved, that would be the second major loss for FTC Chairman Lina Khan as head of regulator, but gains include the FTC, Lockheed Martin Corp. It also killed off the merger between Aerojet Rocketdyne. Nvidia Corp.’s offer to buy Arm from SoftBank Group Corp.
Activision said the deal will benefit consumers and workers.
Microsoft will get a boost and stay with games like Candy Crush and Call of Duty Mobile. According to analytics firm NewZoo, mobile gaming is the industry’s fastest growing segment and $92 billion, half of the world market.
Competitors fear Microsoft will use its newfound advantage to hurt competitors like Sony by reducing access. Publishing best-selling titles or more games exclusively for Xbox and PC.
Source: Exame
I am Bret Jackson, a professional journalist and author for Gadget Onus, where I specialize in writing about the gaming industry. With over 6 years of experience in my field, I have built up an extensive portfolio that ranges from reviews to interviews with top figures within the industry. My work has been featured on various news sites, providing readers with insightful analysis regarding the current state of gaming culture.
