A U.S. federal judge has rejected the FTC's request to block Microsoft's $68.7B purchase of Activision Blizzard, allowing the mega-deal to proceed as planned. The acquisition, which is the largest-ever deal in gaming, could potentially close by the July 18 expiration date. In her decision, Judge Jacqueline Scott Corley stated that the FTC failed to demonstrate that the merger would substantially harm competition in gaming markets, or lead to the withdrawal of games from Sony PlayStation, a competitor to Microsoft's Xbox. - The FTC has until Friday to appeal the decision.
- The ruling also suggests that negotiations in the U.K., where the merger was previously blocked, may be moving in Microsoft's favor.
- According to Financial Times, the U.K.'s competition watchdog has signaled a willingness to discuss the merger and is open to considering revised proposals from Microsoft.
- However, if Microsoft wants to close the deal before the July 18 deadline, it could mean defying the block imposed by the U.K. competition regulator, the only remaining antitrust regulator to officially challenge the takeover.
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