Microsoft’s Activision Acquisition Gets Its Day In Court. What’s at Stake.

A ruling for the FTC would further reduce the chances of the deal, which has a deadline of July 18, going ahead. The acquisition is already in question after the U.K.’s Competition and Markets Authority blocked it in April. 

The FTC sued to block the deal in December on the basis that it would give Microsoft too much power over how consumers access Activision’s games. The granting or denial of an injunction against the deal could be pivotal to whether the deal goes ahead in the U.S., although the legal fight might continue via appeals to federal courts. 

“If the court grants a preliminary injunction, Microsoft and Activision will have to wait until the FTC’s administrative case is over before they can close the deal. The administrative case could take months or years to resolve, depending on whether there are appeals or settlements,” analysts at Macquarie wrote in a research note.

Activision shares were down 0.2% at $80.80 in premarket trading on Thursday, well below the proposed acquisition price of $95 a share and a signal of market skepticism over the deal being completed. Microsoft shares were up 0.1%.

Write to Adam Clark at [email protected]