The case before an in-house judge that aimed to block Microsoft’s $69 billion acquisition of game-maker Activision by the US Federal Trade Commission was officially withdrawn by the agency.
The agency is looking to attack the proposal in two different directions.
- In the district court, which last week refused for a preliminary injunction on the proposed transaction. In the appeals court, which also refused to pause the deal.
- Before an FTC administrative law judge, where the deal was set to go to trial on August 2. It was this action that the US FTC put on hold on Thursday, in an order made by FTC secretary April Tabor..
On Wednesday, FTC’s website posted that Microsoft and Activision argued in a motion that withdrawing the agency’s case was both mandatory and in the public interest.
In their motion, both the companies stated – “The district court had a full opportunity to consider the FTC’s claims and found that the Commission was unlikely to succeed on the merits of those claims for multiple, independently sufficient reasons,”
On Wednesday, Activision Blizzard stated that it has extended the deadline to close it’s takeover by Microsoft to October 18. Both the companies are currently working to secure approval from the UK’s antitrust authority.
A new deal termination fee was agreed upon by both the parties. If the deal is not closed by August 29th, the termination will be increased from $3 billion to $3.5 billion. After September 15, the fee will be increased to $4.5 billion.
Earlier this week, a London tribunal paused Microsoft’s appeal against Britain’s block on its takeover of Activision. This gives the involved parties time to resolve any disputes. Microsoft had put forward a modified deal and the Britain’s competition regulator, CMA requested a two-month stay to review the deal.
