An American judge has cleared a path for Microsoft (MSFT) to complete its $68 billion U.S. purchase of video game maker Activision Blizzard (ATVI).
At the same time, a British regulator said it could reconsider its opposition to the deal that would see Microsoft integrate Activision-Blizzard into its Xbox video game division.
Activision’s stock jumped 10% on the news, rising to $90.99 U.S. per share. Microsoft has agreed to pay $95 U.S. a share to acquire the company than makes popular game titles such as “Call of Duty” and “Tony Hawk’s Pro Skater.”
The purchase of Activision-Blizzard would be Microsoft's biggest deal ever and the largest transaction in the video game industry's history.
In the ruling, a U.S. District Court Judge in San Francisco rejected the U.S. Federal Trade Commission’s (FTC) assertion that the deal will hurt consumers by giving Microsoft exclusive access to best-selling video games such as “Call of Duty.”
The U.S. court has given the FTC until July 14 to appeal its decision, though it’s not clear if the government agency will contest the ruling.
Shortly after the U.S. judge's decision, England’s Competition and Markets Authority (CMA) said it was prepared to reconsider Microsoft's proposals to resolve its antitrust concerns.
To address regulators concerns, Microsoft has offered to license the “Call of Duty” video game franchise to rival video game consoles such as the Sony PlayStation and Nintendo Switch for the next 10 years.
Microsoft’s stock has increased 31% over the past 12 months to trade at $332.47 U.S. per share.
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