Microsoft has secured a major win as U.S. District Judge Jacqueline Scott Corley has given the green light for the company’s acquisition of Activision Blizzard for $69 billion. Despite regulatory concerns about potential anticompetitive effects, the deal will proceed.
Antitrust Claims Refuted
Judge Corley, in her ruling, acknowledged the need for careful examination of the merger, as it could potentially mark the most massive deal in the history of the technology sector. Yet, she contested that federal regulators have not managed to present compelling evidence indicating significant harm that the merger might cause.
Microsoft Prevails in Courtroom
The Federal Trade Commission’s claim that the merger could lead to a substantial diminution in competition, particularly in the sectors of video game consoles, monthly gaming subscriptions, or cloud-based gaming, was invalidated. Judge Corley noted that the commission hadn’t posed significant questions challenging these issues.
CEO’s commitment
During a five-day court hearing in San Francisco, Microsoft CEO Satya Nadella and Activision Blizzard CEO Bobby Kotick both testified. Microsoft’s legal victory was anticipated, and both CEOs promised the court that Call of Duty, a popular game from Activision, would still be available to users on competitor gaming consoles such as Sony’s PlayStation. This solidified Microsoft’s strong presence in the industry.