© Reuters. FILE PHOTO: Microsoft logo is seen on a smartphone placed on displayed Activision Blizzard’s games characters in this illustration taken January 18, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
WASHINGTON (Reuters) – The U.S. Federal Trade Commission said in a court filing on Wednesday that it would appeal a federal judge’s ruling that Microsoft (NASDAQ:) could go forward with its $69 billion purchase of “Call of Duty” maker Activision Blizzard (NASDAQ:).
The filing had no details on the appeal.
Microsoft did not immediately respond to a request for comment.
U.S. District Judge Jacqueline Scott Corley in San Francisco rejected on Tuesday the Biden administration’s argument that the deal would hurt consumers by giving Xbox game console-maker Microsoft exclusive access to games including the best-selling “Call of Duty.”
Experts disagreed on Tuesday over whether the agency had good grounds for an appeal, with some saying that appeals courts tend to defer to judges on matters of fact but others said that Judge Corley erred in stating the standard for stopping a deal.
The deal is Microsoft’s biggest ever, and the largest in the videogame industry’s history. Microsoft’s shares gained 1.4% on Wednesday to close at $337.20.
To address the agency’s concerns, Microsoft agreed to license “Call of Duty” to rivals, including a 10-year contract with Nintendo, contingent on the merger closing.
