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The Federal Trade Commission may stay an internal lawsuit against Microsoft’s $69 billion bid to buy video game giant Activision Blizzard, just days after the FTC failed to prevent a massive merger in federal court, Bloomberg reports. mentionedThis raises the possibility that the two companies are seeking a settlement with the government.
Highlights
A Federal Trade Commission order is expected on Thursday, according to Bloomberg, which cites two unnamed people with knowledge of the matter.
Microsoft and Activision filed a motion The Federal Trade Commission on Tuesday urged the agency to withdraw its case, arguing that there was “no good reason to believe” that an internal FTC judge would find issues with the legality of the merger after a separate federal court cleared the merger last week.
The FTC is to withdraw its internal case — which was due to go before an FTC judge next month — following the agency’s motion to prevent a merger loss in federal court.
Once the FTC withdraws its case, Microsoft and Activision could try to negotiate a settlement with the FTC or ask the government agency to drop its opposition altogether.
Microsoft declined to comment on the matter, and an Activision representative referred it to Microsoft; Forbes I also contacted the FTC for comment.
The Federal Trade Commission may stay an internal lawsuit against Microsoft’s $69 billion bid to buy video game giant Activision Blizzard, just days after the FTC failed to prevent a massive merger in federal court, Bloomberg reports. mentioned, which raises the possibility that the two companies will seek a settlement with the government. tadfdd
Microsoft has announced plans to acquire Activision Blizzard – known for its popular game franchises including Call of Duty And World of Warcraft—A share price of $95 in cash in January 2022, making Microsoft one of the largest video game companies in the world. But the acquisition wasn’t easy: Microsoft faced global regulatory scrutiny over fears the acquisition would hurt rivals like Sony, whose PlayStation console competes with Microsoft’s XBox. Last December, the FTC sued Microsoft through its domestic court — which doesn’t have the power to order a halt to the purchase — but when concerns emerged in June that Microsoft might close the deal overseas, the FTC sued in federal court, asking that the sale be stayed until the outcome of the FTC’s internal lawsuit is determined. Earlier this month, a California judge ruled in Microsoft’s favor and did not grant the injunction, writing that Microsoft’s commitment to maintain Call of Duty Has been on Sony’s PlayStation for 10 years and bringing the series to Nintendo Switch should allay anti-competitive fears. The FTC then appealed, but lost the appeal in the Ninth Circuit Court of Appeals.
The shadow
The UK Competition and Markets Authority – which also sought to block a merger earlier this year – agreed to end its battle with Microsoft and Activision Blizzard last week. Meanwhile, EU regulators gave the green light to the deal in May.
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