The US government said Wednesday that a federal appeals court should block Microsoft’s recent purchase of Activision because a lower-court judge was too deferential to Microsoft’s promises about the future of “Call of Duty,” a popular first-person shooter game.
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Microsoft’s purchase of Call of Duty maker Activision Blizzard won final approval Friday from Britain’s competition watchdog, reversing its earlier decision to block the $69 billion gaming deal and removing the final obstacle for one of the largest tech transactions in history.
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Microsoft revamped its bid to buy video game maker Activision Blizzard on Tuesday to appease British competition regulators, who are the last major hurdle to closing one of the biggest deals in tech history.
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Microsoft and Activision have mutually agreed to extend their merger deadline by three months in the face of ongoing negotiations with the UK government that could allow the $69 billion acquisition to close, the two companies announced on Wednesday.
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Sony had been among the loudest critics of the acquisition. Addressing the company’s concerns about the continued availability of “Call of Duty,” one of the industry’s most popular franchises, could help Microsoft overcome any remaining opposition to the deal and usher it to a conclusion.
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The Federal Trade Commission said Wednesday it would appeal a decision from earlier this week by a district court judge allowing Microsoft to close its $69 billion Activision Blizzard merger.
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A federal judge has handed Microsoft a major victory by declining to block its looming $69 billion takeover of video game company Activision Blizzard. Regulators are seeking to ax the deal because they say it will hurt competition.
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Satya Nadella sought to assure the court that Microsoft has no interest in shutting out PlayStation by making popular Activision games exclusive to Microsoft’s own Xbox system.
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Activision Blizzard CEO Bobby Kotick was in court Wednesday defending Microsoft’s proposed $69 billion takeover of his video game company against an attempt by federal regulators to block the deal.
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