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Microsoft Wins the FTC Case, Clears Way for Activision Blizzard Acquisition

The summer soap opera seems to be coming to an end as Microsoft prepares to close the deal after nearly a year and a half.

Nearly a year and a half after Microsoft announced its intentions to acquire Activision Blizzard, we have witnessed a circus that seemed to never end. But, after last week’s trial between the Federal Trade Commission (FTC) and Microsoft, Judge Jacqueline Scott Corley ruled in favor of the Redmond company.

According to the court’s statement, a verdict was reached that “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.”

“The FTC has not shown it is likely to succeed on its assertion the combined firm will probably pull Call of Duty from Sony PlayStation, or that its ownership of Activision content will substantially lessen competition in the video game library subscription and cloud gaming markets,” the Court added.

“The FTC has also failed to show a likelihood of success on its claim the merger will probably lessen competition in the cloud gaming market because the combined firm will foreclose Activision’s content, including Call of Duty, from cloud-gaming competitors.”

Microsoft reacts to ruling in its favor

And it seems that everything is clear for Microsoft to complete this purchase. In the meantime, Redmond is already celebrating and part of the power elite has posted on social media celebrating this ruling.

For his part, Brad Smith, President and Vice Chair of Microsoft, shared a short statement mentioning that “as we’ve demonstrated throughout this process, we’re committed to working creatively and collaboratively to address regulatory concerns.”

For his part, Phil Spencer, head of Xbox, also made his reaction public on Twitter: “We’re grateful to the court for swiftly deciding in our favor. The evidence showed the Activision Blizzard deal is good for the industry and the FTC’s claims about console switching, multi-game subscription services, and cloud don’t reflect the realities of the gaming market.”

When will the purchase be finalized?

It is important to note that the FTC has 3 days to appeal the court’s decision if it deems it appropriate. In any case, Microsoft’s urgencies pointed to July 18 as the deadline to close the deal. Barring a surprise, we should soon see how it all ends: with Activision Blizzard and its portfolio of studios and games becoming part of Xbox.

Source | The Verge