Published -July 12th, 2023 @ 1:30 PM (GMT+2)

‍

Microsoft is set to make history with its $69 billion acquisition of videogame titan Activision Blizzard (NASDAQ:ATVI), after overcoming significant obstacles in both the U.S. and UK. The U.S. District Court ruling, delivered by Judge Jacqueline Scott Corley in San Francisco, dismissed concerns that Microsoft's (NASDAQ:MSFT) exclusive access to Activision's games, such as "Call of Duty," could harm consumers.

‍

UK Authorities on the Cusp of a Reconsideration

On the heels of the U.S. judge's ruling, the UK's Competition and Markets Authority (CMA) hinted at reassessing its initial opposition to the deal. Microsoft's plans to resolve antitrust issues in the UK may finally see a successful resolution, further strengthening their position in the global gaming market.

‍

FTC's Futile Efforts and Future Actions

The U.S. Federal Trade Commission (FTC) warned of potential competition stifling, as Microsoft could use Activision games to outcompete console rivals such as Nintendo and Sony (NYSE:SONY). However, Judge Corley refuted these claims.

Despite this setback, the FTC remains determined to safeguard open competition in the gaming industry, hinting at possible plans to appeal the court decision.
‍

Learn more about E.U. Approval on Microsoft’s Acquisition of Activision

‍

‍
Microsoft’s Response and Future Plans

Reacting to the court's decision, Microsoft President Brad Smith expressed gratitude and pledged to address the CMA's concerns to secure the deal. As part of its efforts to address competition concerns, Microsoft has offered to licence "Call of Duty" to rivals, including a 10-year contract with Nintendo.

The encouraging legal developments prompted a surge in Activision shares by 10%, while Microsoft saw a modest uptick, with shares rising 64 cents to $332.47.

‍

Potential Impact on the Gaming Industry

The deal, if successful, is expected to propel gaming market sales by 36% over the next four years to $321 billion, according to PwC. The acquisition, Microsoft’s largest to date, will also mark the most significant transaction in the videogame industry's history.

In conclusion Microsoft's prospective $69B Activision acquisition has seen significant progress, overcoming objections from U.S. and UK regulators. While opposition remains, particularly from the FTC, the gaming industry is closely watching the largest-ever deal in its sector.

Learn more about the Temporary Cessation of Microsoft-Activision Blizzard Acquisition

‍

The information on mexem.com is for general informational purposes only. It should not be regarded as investment advice. Investing in stocks involves risk. A stock's past performance is not a reliable indicator of its future performance. Always consult a financial advisor or trusted sources before making any investment decisions

‍

‍