by The $69 billion acquisition of (NASDAQ: $ATVI) Activision Blizzard by Microsoft has been approved by a federal judge, bringing the transaction one step closer to completion.
The agreement, which was made public in January 2022, would establish the third-largest gaming corporation in the world in terms of revenue.
Court Ruling a Positive Sign for Microsoft
Following the court’s decision, Activision Blizzard’s stock price increased by 9%.
Since the announcement of the purchase, the company’s shares have been declining as investors voiced concerns about potential antitrust investigations and regulatory delays.
The purchase is still under investigation by the Federal Trade Commission (FTC), and the organization might file a complaint.
However, Microsoft should take heart from the court’s decision, which raises the possibility that the transaction will be authorized.
Microsoft Takes on Sony and Tencent in Gaming
Microsoft would gain a significant presence in the gaming sector if the agreement is authorized. Some of the most well-known video games in the world, such as Candy Crush, World of Warcraft, and Call of Duty, are published by Activision Blizzard.
Microsoft would gain a sizable game library and a large footprint in the mobile gaming industry as a result of the acquisition.
The agreement is also considered a means through which Microsoft can compete with Sony and Tencent, the two biggest gaming businesses in the world.
The League of Legends video game series is owned by Tencent, while Sony is the PlayStation’s publisher.
Deal Expected to Close in Second Half of 2023
The transaction is anticipated to be completed in the second half of 2023. Activision Blizzard’s acquisition would be the biggest in Microsoft’s history.
Additionally, it would be the biggest acquisition in the gaming sector. A crucial development for the deal is the federal court’s approval of the Microsoft Activision agreement.
Although the FTC may still contest the agreement, Microsoft should benefit from the court’s decision. If the agreement is accepted, it would give Microsoft a significant edge over Sony and Tencent in the gaming market.
