Judge Rules in Favor of Microsoft in Landmark Acquisition
The U.S. Federal Trade Commission (FTC) has been denied the chance to stop Microsoft’s $69 billion purchase of video game company Activision Blizzard.
On Tuesday, a California judge ruled that the deal could now move forward by the July 18 deadline. Judge Jacqueline Scott Corley said that the acquisition, which was first announced 17 months ago, “deserves scrutiny” due to its size and its potential to impact the tech industry.
The FTC had expressed concern that the deal would harm competition in the video game industry. Corley said that the FTC had “not shown a likelihood it will prevail” and that the motion for a preliminary injunction was therefore denied.
If the purchase goes ahead, Microsoft will gain ownership of popular video game titles like Call of Duty, World of Warcraft and Candy Crush. Microsoft has committed to keeping Call of Duty on Sony’s PlayStation platform for 10 years and to bringing Activision’s content to several cloud gaming services.
Stephen Kent, from the Consumer Choice Center, said that Judge Corley had “shown a deep respect for consumer interest, namely the gamers who will be most impacted by Microsoft acquiring Activision-Blizzard.”
Microsoft’s CEO Satya Nadella said that the purchase is part of the company’s strategy to become “the world’s leading digital entertainment company.” He added that the acquisition would “position the company for future growth and enable us to accelerate our innovation in the gaming space.”
The impact of the purchase on the video game industry, and the consumers who play the games, is yet to be seen. Microsoft’s purchase of the video game giant Activision Blizzard could have a huge impact on the industry and it will be interesting to see how the two companies’ new partnership will shape the future of gaming.