Microsoft is Preparing to Close Activision Deal despite FTC Lawsuit

According to the latest report, Microsoft is preparing to close its $69 billion acquisition of Activision Blizzard King despite the Federal Trade Commission’s (FTC) December lawsuit against the deal. Microsoft is optimistic that regulatory bodies in the UK will allow the acquisition. Sources say Microsoft’s commitments to bring the extremely popular Call of Duty franchise to Sony and Nintendo systems moving forward have persuaded regulators.

Approval from the UK’s Competition and Marketing Authority (CMA) is expected later this week. Microsoft is hoping for a favourable decision from the European Commission in May. If Microsoft gets the support of both regulators, the company will rapidly close the deal for $95 a share.

Microsoft is Preparing to Close Activision Deal Despite FTC Lawsuit

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Antitrust experts have reportedly said that approval from both the CMA and European Commission could make it difficult for the FTC’s suit against the deal to succeed.

If this situation comes to pass, the FTC would be left alone in its challenge of Microsoft’s merger.

Just recently, Microsoft won the dismissal of a private consumer antitrust lawsuit over its $69 billion proposed deal with “Call of Duty” maker Activision Blizzard.  Soon after Microsoft announced the deal it started facing competition scrutiny in the EU and UK. Microsoft, on the other hand, has denied the deal would harm video game competition.

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