A federal judge has ruled Microsoft can close its $75 billion acquisition of Activision Blizzard, a major blow to FTC efforts to block the deal.
The deal would combine Microsoft’s Xbox video gaming business with the publisher of popular franchises such as Call of Duty, World of Warcraft, and Candy Crush.Â
The ruling clears any US obstacle, but the companies still seek UK approval.
Read More: Microsoft-Activision hearing starts as FTC aims to block $75 billion deal
The bid got a boost Tuesday when Britain’s Competition and Markets Authority said it was prepared to consider new proposals from Microsoft for addressing its competition concerns.
The FTC had sought an injunction to prevent the two firms from reaching their deal before the agency began a separate process to challenge it in August.
Though it’s uncommon for the agency, FTC can still appeal the court ruling.
It also can continue with its challenge to block the deal.
An FTC spokesman said the agency was dissatisfied with the decision and would announce its next steps soon.
Read More: FTC asks federal court to block $75 billion Microsoft-Activision deal
Microsoft Vice Chair Brad Smith said the company is grateful for the court’s “quick and thorough decision” and committed to addressing regulatory concerns.
Activision Chief Executive Bobby Kotick said the merger will enable competition and benefit consumers and workers.
The deal has been controversial since it was announced in January 2022.
Critics have argued that it would give Microsoft too much power in the video game industry, leading to higher prices and less innovation.
However, Microsoft has defended the deal, saying it will allow it to invest more in new games and services.
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The company has also said it will make Call of Duty and other Activision games available to rival consoles and cloud gaming services.
The ruling in the US is a major victory for Microsoft, but it is not yet clear whether the deal will be approved in the UK.
The CMA is still considering its options, and it is possible that the deal could be blocked there.
If the deal is approved in the US and the UK, it would be the largest video game merger in history.
It would also be a major coup for Microsoft, which has been looking to expand its gaming business.
