U.S. District Judge Jacqueline Scott Corley has ruled against the Federal Trade Commission's plea for a preliminary injunction aimed at blocking Microsoft's (MSFT.us) acquisition of Activision Blizzard (ATVI.us), which is valued at a substantial $69 billion.
Opponents of the merger have directed their attention to the popularity of Activision's renowned Call of Duty series and the potential market dominance it could afford Microsoft in console gaming.
Judge Corley disagreed, maintaining that "the FTC has not shown…that [Microsoft's] ownership of Activision content will substantially lessen competition in the video game library subscription and cloud gaming markets. To the contrary, the record evidence points to more consumer access to Call of Duty and other Activision content."
The ruling does not guarantee the completion of the merger, with the main obstacle now lying with the Competition and Markets Authority (CMA) in the United Kingdom. The CMA has issued a decision to block the deal, prompting Microsoft to file an appeal against this ruling. Moreover, Microsoft may modify the deal to gain the the CMA's approval.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.