Leave it to the newly-activist Federal Trade Commission (FTC) to valiantly attempt to snatch victory from the jaws of defeat. The shuttered in-house hearing from last July, in which the FTC tried to stop Microsoft (NASDAQ:MSFT) from buying video game maker Activision (NASDAQ:ATVI), is making a comeback, and it was just enough to send Microsoft down fractionally as a result in Wednesday afternoon’s trading.
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The move to get an injunction against Microsoft was already shut down by federal judges, but that’s not stopping the FTC. Oh no, now it’s out to start up a new in-house hearing because “…the public interest warrants that this matter be resolved fully and expeditiously.” A new in-house hearing, therefore, is set to fire up in earnest 21 days after the United States Court of Appeals weighs in on the district court’s decision.
Yet, the whole thing may prove moot, depending on the UK. With its antitrust regulator prepared to approve the deal, the Activision-Microsoft deal, valued at around $69 billion, may ultimately go through before the FTC can start its new hearing. An Activision rep noted that it was working with Microsoft to close, but “…how the FTC uses limited taxpayer dollars is its decision,” handily one of the most cutting remarks Activision could have brought out. Remember also that the FTC already has a lawsuit poised against Amazon (NASDAQ:AMZN) with a potential government shutdown lurking in the background.
Is Microsoft a Good Buy Right Now?
Analysts, meanwhile, are largely unfazed by the FTC rearing its head once more. With 30 Buy ratings and four Holds, Microsoft stock is considered a Strong Buy by analyst consensus. Further, with an average price target of $397.19, Microsoft stock offers investors 27.86% upside potential.
