Activision Blizzard stock popped 11% after a judge paved the way for Microsoft to complete its takeover of the game publisher. The decision is a blow to the Federal Trade Commission, which had set a hearing date on the merger for August. Microsoft’s $69 billion purchase would be the largest tech merger ever. Loading Something is loading.
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Activision Blizzard stock jumped on Tuesday after a federal judge ruled that Microsoft could proceed with its $69 billion deal to buy the video game publisher.
Shares climbed as much as 11% to $91.83 around midday on Tuesday.
The ruling from US District Judge Jaqueline Scott Corley said that the FTC had not provided evidence for its claim the merger would hurt competition in the gaming industry. She said the deal would in fact enhance access to popular game franchises like “Call of Duty” and other titles published by Activision.
That’s a far cry from what firms that have voiced opposition to the takeover claim. Biggest among them has been Sony, which produces the Playstation 5, the main rival to Microsoft’s Xbox Series X/S. The company has said it is concerned that Microsoft will make popular franchises like “Call of Duty” exclusive to its consoles.
Microsoft has said it doesn’t intent to do this, but critics point to the firm’s $11 billion takeover of Zenimax in 2021.
That deal resulted in many popular games shifting to Xbox exclusively, including “Elder Scrolls,” as well as the massively hyped “Starfield” due out this fall, which had previously been slated for release on both Xbox and Playstation.
The decision that the deal can proceed is a blow to the FTC and the Biden administration, which has sought to curtail mega-mergers that it says harm competition and are bad for consumers. The deal can now proceed before a hearing that the FTC had scheduled for August, in which it was set to challenge the merger.
The agency said in a statement it was “disappointed” with the decision and would announce next steps in comings days.
In a statement after the ruling, Activision Blizzard CEO Bobby Kotick said the merger will “enable competition rather than allow entrenched market leaders to continue to dominate our rapidly growing industry.”