LogInSources claim that Microsoft is considering defying the Federal Trade Commission and pushing through with its planned $68.7 billion merger with Activision, possibly finalizing the deal in June or earlier.
Microsoft is reportedly set to proceed with its purchase of Activision Blizzard, despite facing a lawsuit from the US Federal Trade Commission (FTC) which attempts to halt the acquisition.
As reported by the New York Post, which cites sources familiar with the matter, Microsoft is planning to finalize its $69 billion deal with the Call of Duty maker in the near future. According to sources, Microsoft is hopeful that the Competition and Markets Authority (CMA) in the UK will approve the deal this week. They also suggest that Microsoft is optimistic about the European Commission, the regulator for the European Union, approving the deal next month.
Assuming that the deal gets the green light from both the UK and the European Union, the FTC will be one of the remaining entities left to grant approval. Nevertheless, one source believes that Microsoft intends to swiftly finalize the deal once it receives the go-ahead from the UK and the European Union.
If the European Commission grants its final approval for the acquisition of Activision Blizzard, the tech giant reportedly aims to expeditiously complete the merger with Activision Blizzard at a share price of $95.
As of April 25, Activision Blizzard's shares were being traded at $85.63 per share. According to one of the traders interviewed by the New York Post, if Microsoft goes ahead with the deal, the value of the stocks is likely to rise to $95. On the other hand, if Microsoft declines the acquisition, the shares are expected to drop to $75.
It is claimed that Microsoft plans to leverage its approval from European antitrust regulators as a supporting argument in a bid to counter the lawsuit filed by the FTC in December 2022.
One of the sources cited by the New York Post claimed that the FTC could potentially obstruct the deal temporarily by disputing it in a federal court. However, if Microsoft secures the approvals from both the CMA and the European Union, it would make it considerably challenging for the FTC to garner the support of the court.
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