Author:
Source
Huge news for the gaming industry dropped this week when a U.S. federal judge sided with Microsoft (NASDAQ: MSFT) to prevent the Federal Trade Commission (FTC) from performing a preliminary injunction to block the technology giant’s acquisition of Activision Blizzard (NASDAQ: ATVI). Shares of Activision Blizzard shot up 10% on the news as this development seems to have greatly increased the chances Microsoft will be able to close the deal.
Here’s what the decision means for Microsoft, Activision Blizzard, and the broader video game market.
Back in early 2022, Microsoft announced its intention to acquire gaming publisher Activision Blizzard for around $69 billion in cash or at a per-share price of $95. The plan for the owner of the Xbox console was to vertically integrate the Xbox platform with gaming content in order to better compete with the likes of Sony‘s PlayStation, Nintendo, and the PC market. Microsoft’s Xbox consoles have historically lagged behind their rivals in gaming hardware unit sales, and the division is reportedly struggling to turn a profit.