Microsoft (MSFT) has come out a winner in a court case brought by the U.S. government that challenged its multi-billion-dollar acquisition of video game maker Activision Blizzard.
A U.S. federal appeals court has rejected a legal challenge by the U.S. Federal Trade Commission (FTC) to Microsoft’s $69 billion purchase of Activision Blizzard, the company behind popular video game titles such as “Call of Duty” and “Skylanders.”
The San Francisco-based 9th U.S. Circuit Court of Appeals upheld a lower judge’s order that said the FTC was not entitled to a preliminary injunction blocking the deal, which closed back in 2023. Since then, Microsoft has absorbed Activision Blizzard into its Xbox video game unit.
Concessions Made
There had been several concerns about reduced competition should popular video games “Call of Duty,” “World of Warcraft,” and others, come under the control of Microsoft, especially if those game titles became exclusive to the Xbox console.
However, Microsoft made several concessions to win regulatory approval around the world and complete its takeover of Activision Blizzard, including striking a10-year deal with Sony (SONY) to keep current and future “Call of Duty” games available for the rival PlayStation console.
MSFT stock has risen 4% this year.
Is MSFT Stock a Buy?
Microsoft’s stock has a consensus Strong Buy rating among 35 Wall Street analysts. That rating is based on 30 Buy and five Hold recommendations issued in the last three months. The average price target on MSFT stock of $506.31 implies 16.18% upside from current levels.
