US FTC Official Withdraws Case That Sought to Block Microsoft-Activision $69 Billion Deal

FTC’s case was before an FTC administrative law judge, where the deal was set to go to trial on August 2.

By Reuters | Updated: 21 July 2023 13:18 IST

US FTC Official Withdraws Case That Sought to Block Microsoft-Activision $69 Billion Deal

Photo Credit: Reuters

Microsoft acquired game-maker Activision for $69 billion (roughly Rs. 5,66,200 crore)

Highlights

US FTC has pursued a two-pronged attack against the proposed transaction
The second was before an FTC administrative law judge
It was set to go to trial on August 2

The US Federal Trade Commission official on Thursday withdrew the agency's case before an in-house judge that sought to block Microsoft's $69 billion (roughly Rs. 5,66,200 crore) acquisition of game-maker Activision.

The agency has been pursuing a two-pronged attack against the proposed transaction. One was in district court, which refused last week to slap a preliminary injunction on the proposed transaction. An appeals court also turned down a request for the deal to be paused.

The second was before an FTC administrative law judge, where the deal was set to go to trial on August 2. It was this attack that the agency put on hold on Thursday, in an order made by FTC Secretary April Tabor.

Activision, Microsoft Extend Deadline to Close $69 Billion Deal to October 18

Microsoft and Activision argued in a motion posted to the FTC's website on Wednesday that withdrawing the agency's case was both mandatory and in the public interest.

"The district court had a full opportunity to consider the FTC's claims and found that the Commission was unlikely to succeed on the merits of those claims for multiple, independently sufficient reasons," the companies said in their motion.

Activision Blizzard said on Wednesday it had extended the deadline for the close of its takeover by Microsoft to October 18 as the companies work to secure approval from the United Kingdom's antitrust authority.

Microsoft Gets Two-Month Pause on UK Appeal Over Its Activision Deal

The Call of Duty publisher said the companies also agreed to increase the deal termination fee to $3.5 billion (roughly Rs. 28,700 crore) from $3 billion (roughly Rs. 24,600 crore) if it does not close by August 29. The fee will further rise to $4.5 billion (roughly Rs. 36,900 crore) after September 15.

Earlier this week, Microsoft's appeal against Britain's block on its takeover of Activision was formally paused by a London tribunal, to give the parties more time to resolve the dispute. Microsoft, Activision, and Britain's competition regulator, the Competition and Markets Authority (CMA), had all asked for a two-month stay of the case after the CMA said it would consider a modified deal put forward by Microsoft.

Microsoft Asks London Court for Two-Month Pause of Appeal Over Activision Deal

Will the Nothing Phone 2 serve as the successor to the Phone 1, or will the two co-exist? We discuss the company's recently launched handset and more on the latest episode of Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.