TODAY, JUNE 29 at 3:00 PM ET
CLICK HERE for the event and related materials.
The FTC is struggling in its effort to obtain a federal court injunction to prevent closure of the Microsoft-Activision Blizzard deal pending a full administrative trial. Hearings wrap up this afternoon and we anticipate a defeat for the FTC, probably before mid-July. If Microsoft overcomes FTC opposition in the U.S., pressure will mount on the UK's Competition and Markets Authority (CMA) to resolve its dispute with the merging companies, reinforcing a favorable trend toward ultimate consummation of the transaction.
Currently, the companies are appealing the CMA's decision to impose a global block on the transaction. If oral arguments proceed as scheduled, hearings will begin before the UK's Competition Appeal Tribunal on July 28. Despite deferential judicial review standards for CMA merger decisions, we believe there is a significant likelihood that if the case proceeds to a final ruling, the CMA's Microsoft-Activision decision will be overturned (quashed) by late summer and sent back to the CMA for a redo. If matters reach that point, the CMA's global block would be difficult to justify and enforce.
We'll review the chief components of the upcoming court ruling and the potential avenues for a successful resolution of the battle with UK regulators. We hope you will join us.
