FTC Ends Legal Challenge to Microsoft Corporation (MSFT)’s Activision Acquisition
On May 22, 2025, the U.S. Federal Trade Commission (FTC) withdrew its administrative case opposing Microsoft Corporation (NASDAQ:MSFT)'s $69 billion acquisition of Activision Blizzard. The decision arrived nearly two years after the transaction was finalized, turning the acquisition into the largest in the video game industry's history.
A development team working together to create the next version of Windows.
Microsoft Corporation (NASDAQ:MSFT), the global technology giant, acquired gaming powerhouse Activision Blizzard for $68.7 billion in an all-cash deal. The transaction was completed on October 13, 2023, and with the acquisition, the company aimed to elevate its presence in the gaming industry.
However, the FTC has been trying to block the acquisition by filing a case against Microsoft Corporation (NASDAQ:MSFT) in December 2022, claiming that the takeover would harm competition in gaming by giving the company unfair control over popular content like Call of Duty.
Following a failed appeal on May 7, 2025, that aimed at reversing a federal court’s refusal to halt the merger, the FTC had opted not to pursue further litigation on May 22, 2025, citing public interest concerns.
Microsoft President Brad Smith lauded the withdrawal, saying, “A victory for players across the country and for common sense in Washington, D.C.”
According to Reuters, this move by the agency may perhaps be in line with the FTC Chairman Andrew Ferguson's shift in enforcement strategy since other high-profile cases, including the one against PepsiCo, were similarly shelved this week.
Earlier on the same day, pointing to insights gathered from the annual Microsoft 360™ event, which featured panels with Microsoft executives and partners, Evercore ISI elevated the price target from $500 to $515 while maintaining an Outperform rating. With these new developments favouring the company, there arises curiosity regarding Microsoft Corporation (NASDAQ:MSFT)'s growth prospects.
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