Game Over: FTC Drops Challenge, Microsoft’s $69B Activision Blizzard Mega-Deal Is Officially Sealed!

In a decisive conclusion to a protracted regulatory saga, the U.S. Federal Trade Commission (FTC) has officially withdrawn its two-year-old objection to Microsoft’s colossal $69 billion acquisition of Activision Blizzard. The move, coming just days after an appeals court denied the agency’s latest attempt to block the deal, firmly cements one of the largest acquisitions in tech and gaming history.

The path to this moment has been a lengthy one. The FTC’s appeal to halt Microsoft’s purchase of the Call of Duty and Diablo powerhouse was rejected by San Francisco’s 9th U.S. Circuit Court of Appeals on May 7. This decision by a three-judge panel upheld a previous July 2023 ruling that had allowed Microsoft to move towards finalizing the purchase, which was first announced way back in late 2022.

Microsoft’s ambitious acquisition faced intense scrutiny globally for over three years. Many worried that beloved franchises, particularly the juggernaut Call of Duty, could become Xbox exclusives. However, Microsoft consistently stated it had no plans for lengthy exclusivity periods for major franchises and even sold Activision-Blizzard’s cloud gaming rights to Ubisoft to satisfy the UK’s Competition and Markets Authority (CMA). Despite these hurdles, Microsoft successfully completed the purchase in October 2023.

The FTC’s appeal could have thrown a late wrench in the works. But, as reported by The Verge, the Commission has now fully dismissed its complaint. In a brief filing on May 22, the FTC stated: “The Commission has determined that the public interest is best served by dismissing the administrative litigation in this case.” The filing acknowledged the Ninth Circuit’s affirmation of the earlier court decision denying the FTC’s injunction request.

What This Means: Xbox’s Powerhouse Portfolio Grows!

With this final regulatory chapter closed in the U.S., Microsoft now unequivocally owns an incredible lineup of gaming intellectual property, including:

• Call of Duty: The undisputed king of annual sales, this shooter franchise was a central point of discussion during the acquisition and continues to dominate charts, as seen with Call of Duty: Modern Warfare 3.

• Diablo: A monster hit in the action RPG scene, Diablo 4 launched to massive success in 2023, with Blizzard promising ongoing annual expansions.

• Halo: Xbox’s iconic flagship series, with Master Chief remaining a cornerstone of the brand. Halo Infinite continues to receive updates and support.

• World of Warcraft: The legendary MMORPG that defined a genre. Released in 2004, it remains a cultural touchstone with a dedicated player base and regular major expansions, with a significant tenth expansion anticipated for its 20th anniversary.

For Microsoft, Activision Blizzard, and gamers worldwide, the FTC’s decision marks the true end of a long and complex journey, finally allowing the combined entity to move forward without this lingering U.S. legal challenge.