Activision shares rise amid court ruling in favor of Microsoft deal

Shares of video game maker Activision Blizzard rose 11% to $91.83 after Microsoft received court approval to buy Blizzard for $69 billion. This deal will be the largest technology merger in history. 

It is noted that such a decision is unprofitable for the US Federal Trade Commission (FTC), which has scheduled a hearing on the merger for August this year. U.S. District Court Judge Jacqueline Scott Corley noted in her decision that the FTC had not provided sufficient evidence to claim that this merger would harm competition in the gaming industry. In fact, it will only expand access to popular Activision game franchises, such as Call of Duty. 

The deal is also opposed by competing companies, primarily Sony – the manufacturer of the Playstation 5, the main competitor of Microsoft's Xbox Series X/S. Sony is worried that Microsoft will make popular game franchises exclusive to its consoles, despite Microsoft's claims that this is not planned. 

The court's ruling in favor of the deal is a major blow to the FTC and the Biden administration, which has sought to limit large-scale mergers that harm competition.