FTC reportedly preparing to pause in-house trial of Microsoft's Activision Blizzard acquisition
US antitrust agency the Federal Trade Commission is reportedly preparing to pause its upcoming in-house trial focussing on Microsoft's proposed $69bn USD acquisition of Activision Blizzard, potentially paving the way for settlement talks between the various parties.
The FTC has long expressed opposition to Microsoft's proposed deal and sued to block its progress in December last year, claiming the acquisition would allow the company to suppress its games industry competition. The agency has more recently been in the news after it failed to secure an injunction preventing Microsoft from closing the deal while its in-house court deliberated whether the acquisition should be blocked.
Following that defeat, and a subsequent failed attempt to secure injunctive relief, the FTC is preparing to suspend its own trial - which was due to be heard by its in-house administrative court in August - in response to a request from Microsoft and Activision. Bloomberg, citing sources familiar with the case, says the request must be granted after the FTC's unsuccessful federal court bid under the agency's own rules.
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Bloomberg reports the FTC is expected to make the order to withdraw its case later today, after which Microsoft and Activision can seek to persuade the agency's commissioners to accept a settlement or to entirely drop their opposition to the acquisition.
The deadline to close the merger was originally set for 18th July this year but Microsoft and Activision Blizzard have now agreed to extend that deadline to 18th October - albeit with higher termination fees - saying they're "optimistic about getting this done."
That optimism likely extends well beyond the FTC; Microsoft and Activision recently reached an agreement with the UK's Competition and Markets Authority - which officially blocked the acquisition in April - to apply for a two-month "stay of litigation" while potential remedies were discussed. That request has now been provisionally granted by the Competition Appeal Tribunal, which was originally due to hear Microsoft's appeal against the CMA on 28th July.
The CMA has also now extended the deadline for its final decision on Microsoft's proposed acquisition of Activision Blizzard from July 18th to August 29th.
Source: Eurogamer.net
