Overview

• The Ninth Circuit Court of Appeals unanimously upheld a lower court's decision denying the FTC's request for a preliminary injunction against Microsoft's acquisition of Activision Blizzard.
• The ruling confirms that the FTC did not sufficiently demonstrate that the merger would harm competition in console, subscription, or cloud gaming markets.
• Microsoft completed the $69 billion acquisition in October 2023, following global regulatory approvals and commitments to keep Call of Duty on rival platforms for at least 10 years.
• The FTC's administrative challenge to the merger remains pending but is unlikely to reverse the deal, as the court's decision is seen as a major blow to the agency's case.
• This acquisition marks the largest-ever deal in the video game industry, reshaping market dynamics and prompting price adjustments and layoffs post-merger.