On Friday, the stock price of Microsoft Corporation increased while a US court refused to pause the firm’s deal with Activision Blizzard.
It rose by 0.75% to $345.24 per share on July 14. Likewise, it is expected to go up by 0.47% to $346.85 apiece in the upcoming session.
The rejected pause of Microsoft acquisition deal with Activision Blizzard was worth $69.00 billion. This removed one of the obstacles that restricted the Xbox maker from closing the deal to improve its gaming sector.
According to its president, Brad Smith, the fast response in refusing the FTC’s motion to delay the deal was appreciated. Also, he said that it brought them closer to their goal in terms of global regulatory reviews.
However, Britain still needs to approve the most significant deal in the gaming industry’s history.
Since the acquisition’s pause was denied, the FTC may quit the fight as it did in similar situations. For instance, it lost in federal court against Meta’s purchase of Within Unlimited in February, dropping the challenge.
Moreover, the Microsoft and Activision Blizzard agreement will expire on July 18. After that date, either company could withdraw from the contract unless another extension is agreed upon.
On the other hand, the FTC claimed the agreement would negatively affect consumers. It mentioned that the firm could shut out competitors such as Sony Group.
Call of Duty to Stay on PlayStation by Microsoft
On Sunday, gaming CEO of Microsoft, Phil Spencer, stated they agreed to keep the game Call of Duty on PlayStation. The move follows the merger deal with Activision Blizzard.
The effort to have the game remain on PlayStation could lessen the number of concerns about the acquisition’s impact. Moreover, Brad Smith said they would focus on keeping the shooting game on several other platforms for more players.
The FTC argued about the damage the merger would cause regardless if consumers played on consoles or had subscriptions. As a result, Microsoft handled FTC’s concerns by agreeing to license the game to its competitors. Also, it included a 10-year contract with Nintendo as determined on the acquisition closing.