Yesterday, we reported on the rumor that the FTC intended to appeal the injunction to block the Microsoft Activision deal. Today, we know that the FTC has moved forward with their appeal.
As reported by Video Games Chronicle, the FTC confirmed that they filed the appeal on Wednesday. As previously explained by Judge Corley, she would give at least five days leeway for an appeal could be filed by either party. That gives them sufficient time to resolve the issue before July 18, the deadline Microsoft and Activision set to close their deal.
The Verge acquired this response from Microsoft president Brad Smith:
“The District Court’s ruling makes crystal clear that this acquisition is good for both competition and consumers. We’re disappointed that the FTC is continuing to pursue what has become a demonstrably weak case, and we will oppose further efforts to delay the ability to move forward.”
Activision Blizzard’s Chief Communications Office Lulu-Cheng Meservey shared this response on Twitter:
“The facts haven’t changed. We’re confident the U.S. will remain among the 39 countries where the merger can close.
We look forward to demonstrating the strength of our case in court – again.”
In turn, Blizzard president Mike Ybarra simply tweeted, “Your tax dollars at work.” Only yesterday, Ybarra had been tweeting that the sleeping giant in Blizzard was finally waking up.
As we had also previously covered, the FTC’s prospects of success are quite dim. Judge Corley’s verdict dismissed each argument that the regulator pushed to end the deal. The FTC is now tasked to argue that Judge Corley made not one, or two, but a significant number of mistakes in her judgement, that would justify a court taking a look at this case all over again.
In the chance that an appeals court would agree to review the case, it may or may not lead to the end of the deal. If the appeals court decides to schedule a new hearing, Microsoft and Activision may have to move their July 18 deadline.
But given the merits of the case, the more likely outcome would be that FTC’s appeal simply getting dismissed.
FTC can still push through with their own internal case, headed by Judge Michael Chappel, but of course, that, and the negotiation Microsoft and the CMA are doing for the UK, are all likely to go through after Microsoft and Activision finalize their deal.
At that point, Microsoft and Activision would simply continue to defend their acquisition in court, while they move forward with their own business plans.
