The FTC injunction to halt the acquisition of Activision Blizzard has been denied, and Microsoft is now free to close the deal. Following the ruling, FTC has appealed the decision, but a new development suggests Microsoft is gearing up to complete the merger.
Activision Blizzard is departing from the Nasdaq stock exchange before the market opens on July 17, hinting that Microsoft could close the deal on Monday.
Why it matters: This would mean that Microsoft is closing the deal without the CMA’s agreement. As such, the gaming giant would need to consider alternate methods for the deal in the UK.
According to the announcement, Activision Blizzard will be replaced by The Trade Desk Inc on the stock exchange.
Previously, Microsoft set a deadline of July 18 for the merger. Following the date, Microsoft would need to renegotiate the deal, potentially having to pay a penalty to Activision. However, this move could suggest that this will not happen.
The CMA and Microsoft are set to discuss solutions over the deal after pausing the CAT appeal, but it remains to be seen if the regulator will end up approving the merger before July 17.
If this does not happen, Microsoft would likely provide Activision games through a third party in the UK or consider other alternatives.
An announcement on Monday could conclude several months of efforts from Microsoft.
The gaming giant has fought hard against various regulators, attempting to convince authorities and gaming rivals that the merger would not harm competition. Following the ruling, Judge Corley also supports this view, claiming that the deal would benefit gamers.
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