2023-07-13 06:09:32
As rumors of corridors evoked it, the FTC announced its decision to appeal the verdict of the federal court to obtain an injunction against the takeover of Activision Blizzard by Microsoft. Meanwhile, the US stock market is preparing for Activision’s demise.
The injunction proceedings launched by the FTC (Federal Trade Comission) against Activision Blizzard’s proposed takeover failed. Judge Corley’s verdict was clear: from Saturday 15 Julythe expiration date of the temporary ban created by the procedure, Microsoft is free to absorb the number 1 video game publisher in the world for 68.7 billion dollars.
Pressed for time, since the takeover project must be concluded before Tuesday, July 18, 2023the FTC has announced its willingness to appeal, after a day of reflection.
The FTC appeals, Microsoft is disappointed
The American competition authority therefore unveiled its decision on the night of July 12 to 13, 2023 to appeal the decision of the federal court. The request is made before the Court of Appeals for the 9th Circuit, and we therefore leave the court of Northern California for the start of this new procedure.
This decision is surprising, the FTC usually decides to drop the cases when the agency loses in federal court. This is what she had decided in the Meta – Within case.
The priority for the FTC with this appeal is to obtain a temporary hold on the takeover between Friday, July 14, 11:59 p.m. and Tuesday, July 18, the deadline set by the contract between Activision and Microsoft for the completion of the takeover.
It is unclear at this time whether an appeals court will agree to grant such a temporary block so soon after the FTC’s first defeat in court.
Microsoft President Brad Smith has reacted to the FTC’s decision.
This time, the company takes off its gloves and says it is disappointed that ” the FTC continues to pursue this case which has been shown to be weak ».
Activision Blizzard prepares to disappear
Given the deadlines, Microsoft and Activision continue to move forward on the merger despite this latest turnaround.
And Nasdaq press releaseone of the largest equity markets in the United States, announced that Activision Blizzard, Inc. stock will no longer be listed when markets open on Monday, July 17, 2023.
This means that it should no longer be possible to buy or sell Activision Blizzard stock from this date. In other words, Activision Blizzard probably expects to have joined Microsoft by this date. The latter will then have bought back all the shares.
As a reminder, the United Kingdom has also blocked the takeover, but Microsoft and Activision have already half-worded threats to ignore this decision. The two companies could trigger a new investigation in the UK with a new proposed takeover, while proceeding with the merger in the rest of the world.
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