Microsoft Acquisition of Activision Clears FTC Hurdle
Deal News | May 24, 2025 | EIN
The U.S. Federal Trade Commission has withdrawn its legal challenge against Microsoft Corporation's successful $68.7 billion acquisition of Activision Blizzard, finalizing the historical transaction nearly two years after its completion. The FTC's decision to drop the case follows a failed appeal in May 2025 and coincides with a change in their enforcement strategy, influenced by recent developments in similar high-profile cases. Microsoft's acquisition, completed in October 2023, marked the largest buyout in the video gaming sector, enhancing its market stance. Despite the legal challenges, industry appraisals such as Evercore ISI remain optimistic about Microsoft's growth outlook while bringing attention to competitive AI stocks offering substantial potential.
Sectors
- Video Gaming
- Technology
Geography
- United States – The transaction and legal proceedings took place primarily under U.S. jurisdiction, involving major American corporations.
Industry
- Video Gaming – The sector pertains as the acquisition of Activision Blizzard significantly impacts the gaming industry's dynamics.
- Technology – Microsoft is a global tech giant, and the acquisition advances its technological and competitive edge in related markets.
Financials
- $68.7 billion – The total cash value of Microsoft's acquisition of Activision Blizzard.
- $500 to $515 – Evercore ISI's revised price target for Microsoft's stock.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Microsoft Corporation | Acquirer | Company | Global technology leader involved in acquiring Activision Blizzard. |
| Activision Blizzard | Target Company | Company | A leading video game company acquired by Microsoft. |
| U.S. Federal Trade Commission (FTC) | Government | Government | The federal agency that initially challenged the acquisition but later withdrew the case. |
| Brad Smith | Person | Person | President of Microsoft Corporation, praised the withdrawal of the FTC case. |
| Andrew Ferguson | Person | Person | FTC Chairman whose strategic enforcement shift influenced the case outcome. |
| Evercore ISI | Financial Analyst | Company | Financial entity that evaluated Microsoft's financial prospects post-acquisition. |