WASHINGTON (Reuters) – In a recent development, a U.S. federal court has dismissed the Federal Trade Commission’s (FTC) plea to halt Microsoft’s $69 billion acquisition of the popular video game creator, Activision Blizzard, known for its renowned game series “Call of Duty”. The court filing confirmed the rejection of the FTC’s request.
This decision comes as a blow to the FTC’s efforts to delay the closing of the deal. The court’s decision indicates that Microsoft will be able to proceed with its acquisition plans without any temporary hold requested by the FTC.
The Federal Trade Commission argued that the merger would potentially create a monopoly and harm competition in the gaming industry. However, the court disagreed with this claim and concluded that there was insufficient evidence to support the FTC’s concerns.
The acquisition of Activision Blizzard by Microsoft has been closely monitored by industry experts and gaming enthusiasts alike. This deal is seen as a major strategic move by Microsoft to strengthen its position in the gaming market and compete with other tech giants such as Sony and Nintendo.
The court filing has sparked a mixed response from the gaming community. Some fans of the “Call of Duty” franchise express concerns about the potential impact of the merger on the future direction of the game series. Others remain optimistic about the merger, hoping that Microsoft’s resources and expertise will lead to exciting innovations and improvements in the franchise.
With this legal impediment cleared, Microsoft is now one step closer to finalizing its acquisition of Activision Blizzard. However, it is worth noting that the FTC may still pursue other legal avenues to challenge the deal in the future.
As the news broke, Microsoft’s stock price experienced a slight increase, reflecting the market’s positive sentiment towards the acquisition. The stock market views this move as a strategic investment by Microsoft to expand its presence in the highly lucrative gaming industry.
In conclusion, although the FTC’s request for a temporary hold on Microsoft’s acquisition of Activision Blizzard has been rejected, the legal battle might not be over. The outcome of this acquisition will undoubtedly have a significant impact on the gaming industry, and stakeholders will continue to closely monitor the situation.
Reported by Kanishka Singh in Washington; Edited by Sandra Maler
Credit: The Star : Tech Feed
