Judge denies injunction in Microsoft’s Activision Blizzard acquisition

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A judge has denied the Federal Trade Commission’s request for a preliminary injunction to block Microsoft and Activision Blizzard’s pending merger. While the FTC can still appeal this decision, this is a major win in favor of the acquisition.

Had the FTC won, it would have prevented the two companies from closing the deal before hearings on August 2. The original agreement includes a termination date of July 18. During last week’s hearings, Bobby Kotick, CEO of Activision Blizzard, confirmed that the company’s board did not see a path forward to complete the deal if the judge granted the injunction.

“This Court’s responsibility in this case is narrow. It is to decide if, notwithstanding these current circumstances, the merger should be halted — perhaps even terminated — pending resolution of the FTC administrative action,” concluded Judge Jacqueline Scott Corley in her decision. “For the reasons explained, the Court 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. To the contrary, the record evidence points to more consumer access to Call of Duty and other Activision content. The motion for a preliminary injunction is therefore DENIED.”

Both Activision Blizzard and Microsoft issued statements following the ruling, praising the judge’s ruling.

“We’re grateful to the court for the way this process was handled and the thoughtfulness of the decision. The U.S. joins the 38 countries where our deal can proceed—these decisions are based on facts and data that show our merger is good for players and for