FTC May Pause Battle with Microsoft, Opening Possibility of Settlement in Activision Blizzard Deal

The US Federal Trade Commission Ponders Settlement in Battle with Microsoft over Activision Blizzard Deal

The US Federal Trade Commission (FTC) is reportedly considering pausing its legal dispute with Microsoft regarding the company’s impending acquisition of Activision Blizzard. Sources familiar with the case suggest that this development opens up the possibility of a potential settlement between the two parties.

If the FTC decides to withdraw its case, it would create an opportunity for Microsoft and Activision to engage in settlement discussions, provided they can convince the FTC’s commissioners to come to the negotiating table.

According to sources, an order to withdraw the trial could be issued as early as today.

Microsoft and Activision Extend Merger Agreement

In an effort to finalize the $69 billion deal, Microsoft and Activision Blizzard announced an extension of their merger agreement until October 18, 2023. This extension came after the expiration of their initial deadline to complete the merger on Tuesday.

The merger has already been approved by the European Commission in May and cleared in the United States after Microsoft emerged victorious in a court battle against the FTC.

However, the deal still requires approval from the UK’s Competition and Markets Authority (CMA), which currently poses a significant obstacle to its closure.

Xbox boss Phil Spencer expressed optimism, stating, “We’re confident in achieving approval and excited to bring more games to players worldwide.”

CMA Deadline Extended for Microsoft’s Proposal

The CMA has granted an extension for its final decision on the deal until August 29. This decision was made to allow for consideration of a new proposal put forth by Microsoft.

Reportedly, Microsoft is exploring the possibility of selling some of its cloud gaming rights in the UK to garner approval for the merger.