US Federal Trade Commission (FTC) specified on Wednesday, which is appealing a federal judge’s decision earlier this week that Microsoft could strike a deal to buy Activision Blizzard worth $68.7 billion.
The announcement follows the FTC’s failed attempt to block the deal, saying the merger would hurt competition by giving Microsoft exclusive control of popular video game franchises like Call of Duty. US District Judge Jacqueline Scott Corley found the FTC’s arguments unconvincing and refused to grant her request for an injunction against the deal, which would have allowed the commission to hold its own hearing on the matter in August. Jacqueline Scott Corley said on Tuesday that she would not interfere in finalizing the deal between Microsoft and Activision Blizzard.
It is not known at this time what new arguments the FTC has prepared to appeal to the U.S. Court of Appeals for the Ninth Circuit to persuade them to issue a decision extending an existing injunction (TRO), which was filed at 11:59 a.m Clock expires PT Friday, July 14.
Failing that, Microsoft has every opportunity to close the deal with Activision within days of the July 18 deal deadline. Otherwise, the companies can agree on an extension of the contract period.
We add that the deal between Microsoft and Activision is still being questioned by the UK’s competition and markets regulator, although the parties announced a stay of litigation to negotiate following the court decision.