FTC makes another move to block Microsofts Activision Blizzard takeover

The Federal Trade Commission plans to file a request for an injunction to block Microsoft’s proposed $68.7 billion acquisition of Activision Blizzard before the July 18 deadline.

We wish you the opportunity to represent our case in federal court, said the president of Microsoft, Brad Smith, at CNBC. We believe that accelerating the legal process in the United States will ultimately bring more freedom and competition in the market.

The FTC sued last December to block the government from taking over Activision after its initial agreement was reached in January 2022. Regulators blocked the deal in April due to a lack of time for Microsoft to take on a game such as Call of Duty and Overwatch. The appeal for the U.K. decision from Microsoft is scheduled for this summer.

Japan approved the gaming merger. In addition, European Union regulators plan on permitting the deal to go through. Activision Blizzard recorded positive results in its Q1 2023 earnings report, with a net income of 240 million dollars and an 87% rise over the first quarter.

Activision owns the Call of Duty League and Overwatch League, but the esports has struggled financially over the past couple of years. Jacob Wolf reported that Activision Blizzard received $400 million in franchise payments across the two leagues in May.

The group said earlier this month that the league agreed to waive about eight million in entry fees that the team owed the league in response to Activision’s effort to ease the cost of the esports division in the CDL and in the OWL.