The US Federal Trade Commission has withdrawn its case seeking to block Microsoft’s colossal $69 billion takeover of gaming giant Activision.
The agency had been pursuing a two-pronged approach to halt the proposed acquisition, but its efforts hit roadblocks at every turn.
Last week, the district court denied the FTC’s request for a preliminary injunction, ruling that the Commission was unlikely to succeed on the merits of its claims.
Meanwhile, an appeals court also rejected the agency’s plea to pause the deal.
On Thursday, the FTC put its second attack on hold, an administrative law trial set for August 2, with FTC Secretary April Tabor issuing the order.
In response to the FTC’s move, Microsoft and Activision jointly argued that the withdrawal was mandatory and in the best interest of the public.
The companies stated in their motion posted on the FTC’s website, “The district court had a full opportunity to consider the FTC’s claims and found that the Commission was unlikely to succeed on the merits of those claims for multiple, independently sufficient reasons.”
Amid the ongoing developments, Activision Blizzard has extended the deadline for the deal’s close to October 18 as the companies strive to obtain approval from the UK’s antitrust authority.
To incentivize a timely completion, the deal termination fee has been raised to $3.5 billion from $3 billion, with a further increase to $4.5 billion after September 15.
Earlier this week, Microsoft’s appeal against the Competition and Markets Authority’s block on the takeover was formally paused by a London tribunal.
The pause aims to provide ample time for the parties to reach a resolution as the CMA considers a modified deal proposed by Microsoft.
With the FTC’s withdrawal of the case and ongoing negotiations with UK regulators, the path to the Microsoft-Activision merger seems to be clearing, ushering in new possibilities and reshaping the landscape of the gaming industry.
