FTC to pause trial of Microsoft’s Activision Blizzard acquisition.

FTC to pause trial of Microsoft's Activision Blizzard acquisition.

Microsoft’s Acquisition of Activision Blizzard Faces Potential Settlement Talks Amidst FTC Trial Pause

The Federal Trade Commission (FTC), known for its opposition to Microsoft’s proposed $69 billion acquisition of Activision Blizzard, may be putting its trial on hold to allow for potential settlement discussions between the parties involved1. However, the FTC’s in-house court had previously failed to block the deal and prevent Microsoft’s progress in closing the acquisition2.

In response to a request from Microsoft and Activision, the FTC is reportedly preparing to suspend its own trial3. This comes after the agency’s unsuccessful bid in federal court and is in accordance with its own rules4. While Microsoft and Activision have pending requests for injunctive relief, the FTC is anticipated to withdraw its case later today5.

Microsoft and Activision are expected to persuade the FTC’s commissioners to accept a settlement or drop their opposition to the acquisition6. The original deadline for the merger was July 18th but has now been extended to October 18th, allowing more time for negotiations7. With both companies expressing optimism about the deal, it seems they are determined to push forward despite regulatory challenges8.

The positive outlook is not limited to the FTC; Microsoft and Activision also recently reached an agreement with the UK’s Competition and Markets Authority (CMA). The CMA had previously blocked the acquisition in April but granted a provisional two-month “stay of litigation” to explore potential remedies9. Consequently, the CMA extended the deadline for its final decision to August 29th, allowing more time for discussions10.

Exciting times are ahead for Microsoft and Activision as they navigate regulatory hurdles and work towards the completion of their ambitious acquisition. Stay tuned for updates on this captivating saga!

Sources


  1. Newscast: Is Microsoft’s Activision Blizzard acquisition now a done deal?↩︎

  2. Bloomberg: Microsoft: FTC to Delay Antitrust Trial Over $69 Billion Deal↩︎

  3. Bloomberg: Microsoft: FTC to Delay Antitrust Trial Over $69 Billion Deal↩︎

  4. Bloomberg: Microsoft: FTC to Delay Antitrust Trial Over $69 Billion Deal↩︎

  5. Bloomberg: Microsoft: FTC to Delay Antitrust Trial Over $69 Billion Deal↩︎

  6. Bloomberg: Microsoft: FTC to Delay Antitrust Trial Over $69 Billion Deal↩︎

  7. Bloomberg: Microsoft: FTC to Delay Antitrust Trial Over $69 Billion Deal↩︎

  8. Bloomberg: Microsoft: FTC to Delay Antitrust Trial Over $69 Billion Deal↩︎

  9. Bloomberg: Microsoft-Activision Deal Gets U.K. Nod to Seek Ways to Address Concerns↩︎

  10. Bloomberg: Microsoft-Activision Deal Gets U.K. Nod to Seek Ways to Address Concerns↩︎