Microsoft's $68.7B Activision Blizzard Acquisition Cleared After FTC Drops Lawsuit

Microsoft's acquisition of Activision Blizzard for $68.7 billion has finally received regulatory approval after the Federal Trade Commission (FTC) withdrew its lawsuit following a two-year legal battle. The FTC's decision to drop the lawsuit comes after it lost its appeal, marking the end of a prolonged regulatory dispute.

Microsoft President Brad Smith celebrated the FTC's decision, stating that it was a "victory for all American gamers and common sense in Washington, D.C." The acquisition, announced in January 2023, faced significant opposition from the FTC, which expressed concerns that the deal could harm competition in the cloud gaming market.

The regulatory battle reached a critical turning point in July 2023 when a U.S. federal court rejected the FTC's request for a preliminary injunction, clearing a major legal hurdle for Microsoft. Despite the FTC's subsequent appeal, it failed to reverse the court's decision. With the withdrawal of the lawsuit, the final regulatory obstacle to Microsoft's acquisition of Activision Blizzard has been removed.

This prolonged legal battle highlights the stringent scrutiny that global regulatory bodies apply to mergers and acquisitions involving tech giants. The resolution of this case means that Activision Blizzard's popular intellectual properties, including "Call of Duty" and "Candy Crush," will now be under Microsoft's ownership. This shift is expected to reshape the global gaming industry landscape.