The FTC has decided to appeal a court ruling that cleared the way for Microsoft to purchase Activision Blizzard for $68.7B. A judge ruled earlier this week that the FTC failed to demonstrate that the merger would substantially harm competition in gaming markets. In her decision Tuesday, Judge Jacqueline Scott Corley rejected the FTC's request to block the mega-deal through a preliminary injunction. - The ruling gave Microsoft the green light to potentially finalize the acquisition in a few days, becoming the third-largest video game publisher.
- However, the FTC remains determined to pursue the case and has filed a notice to appeal with the Ninth Circuit Court of Appeals.
- The agency hasn't provided details about why it plans to appeal.
Microsoft and Activision could still finalize the merger before their July 18 contractural deadline. - Failure to close the deal by then could result in a $3B termination fee for Microsoft, or it could request an extension.
- Talks between Microsoft and the U.K.'s Competition and Markets Authority (CMA) continue. The company may need to divest some assets to address the watchdog's concerns about cloud gaming.
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