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shares Activision Blizzard It closed up 10% on Tuesday after a judge denied the FTC’s motion for a preliminary injunction. Microsoft Acquires video game maker.
Shares of Activision Blizzard hit a new 52-week high of $92.91 a share, a move that reflected the video game publisher’s biggest gain since the deal was first announced on Jan. 18, 2022. Activision Blizzard shares hit their highest closing price since July 2021.
Microsoft agreed to buy Activision Blizzard for $68.7 billion, or $95 a share, but the deal faced opposition in the US and abroad over concerns it could stifle competition.
The U.S. District Court for the Northern District of California ruled in favor of the companies on Tuesday.
Writing in the FTC, Judge Jacqueline Scott Corley wrote: “For the reasons explained, the court finds that the FTC has shown no specific Vertical mergers could significantly reduce the likelihood of competition.” her decision.
But the deal is not yet fully clear. The FTC can now take its ruling to the U.S. Court of Appeals for the Ninth Circuit, and Microsoft and Activision Blizzard must find a way to address the U.K. Competition and Markets Authority’s objections.
Activision Blizzard CEO Bobby Kotick wrote in a statement: “We are optimistic that today’s ruling marks the path to full regulatory approval elsewhere around the world, and we stand ready to work with the UK on this issue.” Regulators cooperate to resolve any remaining issues so that our merger can be completed expeditiously.” memorandum To the staff on Tuesday.
— CNBC’s Jordan Novet contributed to this report
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