MS's Acquisition of Blizzard 'Green Light'... US Injunction Dismissed and UK Also Reconsidering (Comprehensive)

The acquisition of Activision Blizzard by Microsoft (MS), which attracted attention as a historic 'tech mega deal,' has received a green light. Following a U.S. court ruling in favor of MS in its legal battle with the Federal Trade Commission (FTC), the UK competition authority, which had previously blocked the acquisition, also expressed its intention to reconsider.

According to the Wall Street Journal (WSJ) and others, U.S. District Judge Jacqueline Scott Corley in California on the 11th (local time) dismissed the FTC's request for a preliminary injunction to halt MS's acquisition of Blizzard.

Judge Corley explained the dismissal by stating in her ruling, "The FTC's claim that this merger would substantially lessen competition in the console, subscription service, or cloud gaming markets has not shown a likelihood of success," and added, "On the contrary, the records indicate that consumers will have greater access to Blizzard content, including 'Call of Duty.'"

Earlier, MS announced in early last year its plan to acquire Blizzard for about $69 billion based on the stock price at the time. This was the largest deal in the tech sector, expected to become the 'deal of the century' if completed. Blizzard is a developer owning popular games such as 'Call of Duty,' 'Candy Crush,' and 'World of Warcraft.' MS's plan was to become the world's third-largest game company after Tencent and Sony through this acquisition. MS initially aimed to complete the acquisition by July 18.

However, the FTC filed a lawsuit at the end of last year to block the acquisition, citing concerns that MS's purchase of Blizzard would weaken competition in the gaming market. Additionally, last month, the FTC filed a preliminary injunction request to prevent MS from proceeding with the acquisition before the administrative lawsuit. The court's dismissal of the injunction request favored MS, not the FTC.

Brad Smith, MS Vice Chairman, welcomed the decision in a statement, saying, "We thank the court for its swift and thorough decision," and added, "We will work creatively and cooperatively to address regulators' concerns." Bobby Kotick, CEO of Blizzard, expressed hope that the merger would benefit consumers and employees.

On the other hand, an FTC spokesperson called the decision "disappointing given the clear threat to the gaming industry," and said, "We will announce the next steps to protect market competition and consumers within days." Separately from the dismissal, the court extended the temporary restraining order issued on the 13th of last month until 11:59 p.m. on the 14th.

The WSJ evaluated, "This decision means there are no obstacles to the merger of the two companies in the U.S.," and added, "MS is likely to complete the acquisition before the FTC hearing scheduled for August." Although the FTC may appeal, this is considered rare. The outlet noted that earlier this year, the FTC also dismissed a preliminary injunction request related to Meta Platforms' startup acquisitions and subsequently abandoned efforts to block those acquisitions. The financial media CNBC also reported that "the two companies are closer to completing the merger."

Good news also came from the UK on the same day. The UK Competition and Markets Authority (CMA), which had denied the acquisition last month citing antitrust concerns, changed its stance immediately after the U.S. court ruling. A CMA spokesperson said, "We are ready to consider MS's proposal to restructure the deal terms in a way that addresses the concerns outlined in the final report," and added, "We have agreed with MS to halt the appeal process in the UK." Previously, MS had appealed the CMA's denial, and related hearings were scheduled to begin on July 28.

Vice Chairman Smith said, "Following today's U.S. court ruling, our focus returns to the UK," and added, "While we do not agree with the CMA's concerns, we are looking for ways to address them in a manner acceptable to the CMA." For MS to complete the acquisition of Blizzard, approvals from the UK, U.S., and European Union (EU) are required. The WSJ reported, "MS has spent a year and a half obtaining acquisition approvals from various countries, demonstrating how challenging it is for global companies to persuade competition authorities with different approaches," and added, "If the final barrier is overcome and the merger is completed, it will invigorate the gaming industry."

With the green light for MS's previously stalled acquisition of Blizzard, the stock price soared. On the same day, Blizzard's stock closed at $90.99 per share on the New York Stock Exchange, up 10.02% from the previous session. It even reached $92.91 during intraday trading. Considering that MS had offered $95 per share for Blizzard, there is also anticipation of further price increases. MS closed slightly higher on the same day.

This content was produced with the assistance of AI translation services.