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Microsoft triumphs over gamers blocking Activision Blizzard takeover

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Microsoft Gets Past Obstacle in Activision Blizzard Acquisition

Microsoft has cleared a hurdle in its proposed acquisition of video game maker, Activision Blizzard. Private plaintiffs had sued Microsoft last December, claiming the deal was harmful to competition. However, their request for a preliminary injunction on the merger was refused by US District Judge, Jacqueline Scott Corley. She ruled that gamers had not provided evidence of their alleged irreparable harm, and therefore allowed the deal to proceed. Meanwhile, Microsoft’s lawyers believe the acquisition would be beneficial to consumers. The merger is still subject to regulatory scrutiny by the US Federal Trade Commission, as well as in China and South Korea.

Background

The merger between Microsoft and Activision Blizzard has faced a number of legal challenges. In December 2021, private plaintiffs instituted proceedings against Microsoft in a California federal court, seeking an injunction to prevent the merger, which they claimed would harm competition. They were, however, not successful in getting preliminary injunction on the merger. Microsoft hopes that the merger will boost its standing in the competitive gaming industry.

Ruling from US District Judge

US District Judge, Jacqueline Scott Corley, dismissed the suit by the private plaintiffs, ruling that they failed to furnish evidence that the merger would cause them irreparable harm. The judge also pushed back on the plaintiffs’ claims that Microsoft would limit the availability of Call of Duty. She said that it wouldn’t be likely that any newer version of the game would be exclusive to the Microsoft platform before a ruling on the merits of the case.

Reactions

Microsoft’s spokesperson has not issued any comments yet regarding the recent decision by the US District Judge. A lawyer representing the plaintiffs, Joseph Alioto, has vowed to press on in challenging the deal, despite losing this preliminary round. The decision of the British competition authorities to reject the proposed deal is still causing a delay, while regulatory approvals are still pending in China and South Korea.

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FAQs

What is the current status of the acquisition between Microsoft and Activision Blizzard?

Microsoft has faced several challenges in their proposed acquisition of video game maker Activision Blizzard. The deal was initially disputed in a California federal court, with private plaintiffs claiming that it would harm competition. However, their request for a preliminary injunction was denied by Judge Jacqueline Scott Corley. The merger is still subject to regulatory scrutiny by the US Federal Trade Commission, as well as in China and South Korea.

Who sued Microsoft in the California federal court, and for what reason?

Private plaintiffs sued Microsoft in December 2021 to enjoin the company’s proposed acquisition of Activision Blizzard. They claimed that the deal was harmful to competition, and urged the court to grant a preliminary injunction to prevent the merger from proceeding.

What was Judge Corley’s ruling on the private plaintiffs’ request for a preliminary injunction on the Microsoft-Activision Blizzard merger?

US District Judge Jacqueline Scott Corley denied private plaintiffs’ request for a preliminary injunction on the proposed merger between Microsoft and Activision Blizzard. The judge ruled that the plaintiffs had failed to provide credible evidence that the merger would cause them irreparable harm, and that there was no evidence that Microsoft would limit the availability of the popular video game Call of Duty.

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