Latest Business News
FTC to Appeal Federal Judge's Decision on Microsoft-Activision Deal
FTC Files Appeal against Preliminary Injunction Denial
The Federal Trade Commission (FTC) has announced its decision to appeal a federal judge's ruling that denied their request for a preliminary injunction to prevent Microsoft's acquisition of Activision Blizzard. The $68.7 billion deal was approved by Judge Jacqueline Scott Corley of the U.S. District Court for the Northern District of California, prompting the FTC to take the case to the 9th Circuit appeals court.
Activision Blizzard CEO Downplays Likelihood of FTC Appeal
During an interview with CNBC, Activision Blizzard CEO Bobby Kotick expressed his skepticism about the FTC appealing the judge's decision. Kotick stated that he would be surprised if the FTC chose to allocate taxpayer resources towards such an appeal, and he believed that the appellate court would not grant a stay on the acquisition.
FTC's Response and Microsoft's Acquisition Timeline
As of now, the FTC has not provided any comments regarding its legal response to the judge's decision. However, Microsoft has set a deadline of July 18th to close the acquisition, which means that the FTC's appeal process needs to move swiftly.
Stay Tuned for Updates
This is an ongoing story, and we will provide updates as the situation develops.
Potential Impact on New Business
The ongoing battle between the Federal Trade Commission (FTC) and Microsoft over the acquisition of Activision Blizzard could have significant implications for new businesses in the tech industry. While the outcome of this case remains uncertain, it raises important questions about the level of competition and antitrust considerations within the industry.
If the FTC's appeal is successful and the acquisition is blocked, it could signal a more aggressive stance from regulatory authorities towards large-scale mergers and acquisitions. This could lead to increased scrutiny and potential hurdles for new businesses looking to enter the market through acquisitions. Startups and emerging companies may face more rigorous antitrust assessments, potentially slowing down their growth and ability to compete with established players.
On the other hand, if Microsoft is allowed to proceed with the acquisition, it could further consolidate power within the technology industry. This could create hurdles for new businesses in terms of market access and competition. The dominance of a few major players could limit opportunities for smaller companies to gain traction and disrupt the market.
In either scenario, entrepreneurs and new businesses should closely monitor the developments of this case and be prepared for potential shifts in regulatory attitudes towards mergers and acquisitions. Adapting strategies to navigate a changing landscape will be crucial for new businesses to thrive and succeed in the evolving tech industry.
Article First Published at: https://www.cnbc.com/2023/07/12/ftc-says-it-will-appeal-to-block-microsoft-activision-deal.html