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Microsoft Looks To Close Activision Deal Despite FTC Suit

 |  April 25, 2023

Microsoft looks to complete its $69 billion acquisition of Activision Blizzard, despite the FTC’s move to block the deal, reported The New York Post.

According to a trader, if the merger with Microsoft is closed, Activision’s shares would likely rise to almost $95, while abandoning the deal could cause a decrease to around $75. As of Tuesday afternoon, Activision’s trading price was $85.63.

The process of blocking a merger is typically simpler through an internal FTC judge rather than a US District Court. However, a preliminary injunction cannot be issued by an FTC judge to halt the closing of a deal, reported Hollywood Reporter. 

At the time, the lack of UK or EU approvals did not seem significant. Nevertheless, to address concerns surrounding the merger, Microsoft has made concessions that have satisfied the UK Competition and Markets Authority (CMA).

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“The CMA has been the toughest regulator over the last several years with tech deals,” the source close to the situation said.

Microsoft, the owner of Xbox gaming console, has agreed to provide access to Activision games on cloud-based video game streaming services for 10 years to companies such as Ubitus and Boosteroid, as part of their efforts to obtain CMA approval.