Microsoft has won its crucial court case against the US Federal Trade Commission (FTC), clearing its way to acquire Call of Duty maker Activision Blizzard for $68.7bn.
Last week’s courtroom battle hinged on whether the FTC could be allowed an injunction to temporarily block the deal while it investigated further. But in reality the case was viewed as a referendum on the deal’s overall ability to still be successful.
Defeat in court would have left Microsoft’s effort to buy the publisher behind World of Warcraft, Diablo 4 and Candy Crush dead in the water, Microsoft had previously admitted.
Today’s decision dramatically boosts Microsoft’s hopes of closing the deal with just days to go until its 18th July deadline, and despite the UK’s Competition and Markets Authority (CMA) still standing in opposition.
Indeed, in another major development today, Microsoft president Brad Smith announced the FTC’s decision had prompted his company and the CMA to agree that a “stay of litigation” was now “in the public interest” – sparking further hopes within Microsoft of a breakthrough on these shores.
UK and Microsoft to restart negotiations
“After today’s court decision in the US, our focus now turns back to the UK,” Smith said today in a statement shared to Eurogamer. “While we ultimately disagree with the CMA’s concerns, we are considering how the transaction might be modified in order to address those concerns in a way that is acceptable to the CMA.
“Microsoft and Activision have agreed with the CMA that a stay of the litigation in the UK would be in the public interest.” – Brad Smith
“In order to prioritise work on these proposals, Microsoft and Activision have agreed with the CMA that a stay of the litigation in the UK would be in the public interest and the parties have made a joint submission to the Competition Appeal Tribunal to this effect.”
Microsoft previously said it would begin a long and likely arduous route to appeal the CMA’s decision later this month. That process would take many months to complete – and even if successful, Microsoft would win the ability to resubmit its deal to the UK’s previously-reluctant CMA for reconsideration.