SONY - FTC hearing to block Microsoft's acquisition of Activision concludes
2023-06-29 20:55:23 ET
A judge will now decide if the Federal Trade Commission can block Microsoft's ( NASDAQ: MSFT ) $69 billion acquisition of Activision ( NASDAQ: ATVI ) after a five-day trial concluded.
Lawyers for the FTC and Microsoft ( MSFT ) gave their closing arguments on Thursday in front of U.S. District Judge Jacqueline Scott Corley in San Francisco. The trial, which started last Thursday, included testimony from Microsoft CEO Satya Nadella as well as Activision ( ATVI ) CEO Bobby Kotick.
The FTC earlier this month filed for a preliminary injunction to block the acquisition of videogame behemoth Activision ( ATVI ), saying that the regulator feared Microsoft ( MSFT ) may try to close the purchase even though the FTC had originally challenged it in December.
The trial and its timing are crucial for the deal as a July 18 termination date soon approaches, where the parties can walk away, extend, or renegotiate the deal.
"All of this is for a shooter video game," Judge Corley said on Thursday, referencing Activision's "Call of Duty" game franchise. "We're concerned about the competition for this one shooter video game.''
On Wednesday, Microsoft's Nadella tried to dispel the FTC's argument that the software giant would try to limit Activision ( ATVI ) content to its own Xbox platform and wouldn't put it on rival platforms like Sony's ( SONY ) PlayStation console.
"It makes no economic sense and no strategic sense," to withhold Activision ( ATVI ) content from Sony's ( SONY ) PlayStation console, Nadella said at the hearing. We "want to get our content on more platforms and become a fantastic first class publisher."
The judge set Friday for findings of fact and plans to make her ruling at some point under seal.
While the FTC trial is crucial, M&A investors are also keenly focused on the appeals court in the UK, where the country's antitrust regulator blocked the deal e arlier this year. A UK appeals court is set to hear the appeal on July 28.
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FTC hearing to block Microsoft's acquisition of Activision concludes