Microsoft said to plan to close Activision deal despite FTC suit - report
Microsoft (NASDAQ:MSFT) is preparing to close its planned $69 billion acquisition of Activision (NASDAQ:ATVI) even as the Federal Trade Commission has sued to block the deal. Activision ticked up 0.8%.
Microsoft (MSFT) is believed to be optimistic about gaining UK antitrust approval for the Activision(ATVI) this week, according to a NY Post report, which cited sources close to MSFT. The UK regulator is scheduled to make a decision on the videogame mega deal on Wednesday.
Microsoft (MSFT) expects to receive European Union approval for the combination next month, according to the report, as the regulator has a June deadline for its review of the deal.
If Microsoft (MSFT) gains the European approval, the company plans to close its $95 a share takeover, the NY Post reported, citing an unidentified source.
The FTC sued in December to block Microsoft's (MSFT) $69 billion acquisition of the videogame publisher. The FTC filed the suit internally before an administrative law judge and the trial is scheduled to start in August.
The NY Post report contends, citing antitrust experts, that if the European Union and UK approval the deal, it may make it difficult for the FTC to win its case to block the deal.
M&A traders told Seeking Alpha that the FTC could potentially look to file for a preliminary injunction in federal court to temporarily block the deal from closing as the regulator did with the Black Knight's (BKI) $11.7 billion plan sale to Intercontinental Exchange (ICE) earlier this month.
The Activision (ATVI) sale to Microsoft (MSFT) is also awaiting approval from China's antitrust authority.
Microsoft also reported Q3 results after the close on Tuesday.
More on the Activision/Microsoft deal
Source: Seeking Alpha
