A US federal court denied the Federal Trade Commission’s request (FTCfor its acronym in English) to order Microsoft to temporarily postpone the closing of its $69 billion acquisition of the maker of “call of duty“, Activision Blizzardaccording to a court document.
A federal judge had already ruled in favor of Microsoft Tuesday, saying the agency had not shown the deal was illegal under antitrust law. The FTC appealed that loss Wednesday night, and Microsoft he said he would fight that appeal. Previously, the FTC requested an order preventing the closing of the deal until the Ninth United States Circuit Court of Appeals ruled on a stay request filed with that court.
Any pending regulatory hurdles make it more likely that the deal between Microsoft and Activision expires on July 18 without the transaction being completed. After July 18, any company will be able to withdraw unless they negotiate an extension. The FTC had asked the court to rule on the pause as soon as possible, noting that an existing temporary restraining order on the deal was due to end just before midnight on Friday.
“We are disappointed that the FTC continue to pursue a case that has been shown to be weak, and we will oppose further efforts to delay the ability to move forward,” Microsoft Chairman Brad Smith said in an emailed statement.
In her request for a pause to Judge Jacqueline Scott Corley, the FTC argued that his denial of an injunction to stop the deal “raises serious and substantial issues for the Court of Appeals to resolve.”
“The FTC requests this Court to prohibit the merger in question until the appeal of the FTC before the Ninth Circuit Court of Appeals. The request is denied,” the judge said in the order issued Thursday night.
The FTC had said it was seeking an injunction to temporarily halt the deal until an internal court judge FTC I could evaluate it. But Corley applied the standard necessary to permanently stop the deal, something the agency argued was inappropriate.
The FTC He also said that the judge erred in assessing the effect of the agreement on subscriptions to various games and how much credit he gave to Microsoft for making agreements with competitors to save the proposed transaction.
To address agency concerns, Microsoft had agreed to license “call of duty” to competitors, including a 10-year contract with Nintendosubject to the closing of the merger.
The deal, the biggest in the history of the video game industry, was also facing difficulties in Britain until this week. After the California ruling, Britain’s Competition and Markets Authority, which had opposed the transaction, said a restructured deal between Microsoft and Activision Blizzard could satisfy your concerns, subject to further investigation.
It is rare for a merger dispute to reach an appeals court. That being said, the FTC appealed a ruling more than 10 years ago when it lost its fight against Whole Foods’ purchase of Wild Oats. The agency reached an agreement with the companies before the appeals court made a decision.
Via: Reuters
Editor’s note: This story is over, now if you’ll allow me, I’m going to see my uncle Bobby Kotick to see if he mocha with a wool.
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