Microsoft's $69B Bid for Activision Gets Green Light from US Judge

The $69 billion acquisition of video game company Activision Blizzard by Microsoft got a green-lit on Tuesday, with a US judge and a British regulator supporting the deal. It marks a major breakthrough for Microsoft, as the US and UK were the two countries opposing the acquisition, which would be Microsoft's largest deal ever and the biggest transaction in the history of the videogame industry.

• US District Judge Jacqueline Scott Corley dismissed concerns over the acquisition of popular games like "Call of Duty" by Microsoft, stating that it would not cause any harm to consumers.

• The judge's decision cleared the way for Microsoft to proceed with the acquisition, as it rejected the US government's arguments against the deal.

• The UK's Competition and Markets Authority (CMA) has expressed willingness to reconsider its opposition to the deal and will review Microsoft's proposals to address antitrust concerns in the UK.

• The CMA's openness to a potential resolution suggests that progress between Microsoft and the regulatory authority could be made.

• Activision's shares surged by 10% following the news of Microsoft's acquisition, indicating investors' optimism about the deal's potential.

• Microsoft's shares experienced a modest increase of 64 cents, reaching $332.47, in response to the positive developments.

• Previously, the US Federal Trade Commission (FTC) raised concerns about Microsoft potentially excluding rival console makers, such as Nintendo and Sony Group, from accessing Activision's games.

• The FTC argued that such exclusion could harm competition within the gaming industry.

• The US judge's approval and the possibility of resolving antitrust concerns in the UK have given Microsoft significant momentum in its bid to acquire Activision.

• The legal battle originated in December 2022 when the FTC initiated legal action to block the acquisition, accusing Microsoft of stifling competition by making certain games exclusive to its Xbox consoles.

• Activision is a leading video game developer with AAA titles such as "Call of Duty," "World of Warcraft," "Diablo," and "Overwatch."

• As part of the company's current strategy, Activision's games are available across multiple platforms, including consoles, PCs, and mobile devices.

• Microsoft's acquisition could potentially allow them to exert control over Activision's franchises, leading to anti-competitive behaviour, the FTC argued.

• Concerns arise regarding Microsoft's ability to manipulate pricing, degrade game quality, change access terms, or withhold content from competitors.

• With positive developments in the US and UK, Microsoft is now closer to achieving its goal of acquiring Activision Blizzard.

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