Microsoft makes final case for Activision Blizzard deal as federal judge decides whether to block it
The fate of what could be the priciest merger in tech industry history will soon be in the hands of a federal judge who must decide whether to stop Microsoft from closing its deal to buy video game company Activision Blizzard.
Federal antitrust enforcers have sued to block the $69 billion acquisition that they say will harm competition between Microsoft and gaming industry competitors such as Sony and Nintendo.
But Microsoft has largely had the upper hand in the 5-day San Francisco federal court hearing that's scheduled to end Thursday, calling in its CEO Satya Nadella and other executives, including longtime Activision Blizzard CEO Bobby Kotick, to testify in favor of the merger.
The Federal Trade Commission, which enforces antitrust laws, has asked U.S. District Judge Jacqueline Scott Corley to issue an injunction that would temporarily block Microsoft and Activision from closing the deal before the FTC's in-house judge can review it in an August trial.
Both Microsoft and Activision have suggested that such a delay would effectively force them to abandon the deal they signed 17 months ago. Microsoft promised to pay a $3 billion breakup fee to Activision if the deal doesn't close by July 18.
Microsoft CEO Satya Nadella arrives at the Phillip Burton Federal Building and U.S. Courthouse, in San Francisco, on Wednesday, June 28, 2023. Microsoft is defending the company's proposed $69 billion takeover of video game maker Activision Blizzard as federal regulators seek to block the deal. Credit: AP Photo/Noah Berger
Microsoft CEO Satya Nadella arrives at the Phillip Burton Federal Building and U.S. Courthouse in San Francisco, on Wednesday, June 28, 2023. Microsoft is defending the company's proposed $69 billion takeover of video game maker Activision Blizzard as federal regulators seek to block the deal. Credit: AP Photo/Noah Berger
Activision Blizzard CEO Bobby Kotick leaves the Phillip Burton Federal Building and U.S. Courthouse in San Francisco on Wednesday, June 28, 2023. Microsoft is defending the company's proposed $69 billion takeover of video game maker Activision Blizzard as federal regulators seek to block the deal. Credit: AP Photo/Noah Berger
Microsoft CEO Satya Nadella arrives at the Phillip Burton Federal Building and U.S. Courthouse on Wednesday, June 28, 2023, in San Francisco. Microsoft is defending the company's proposed $69 billion takeover of video game maker Activision Blizzard as federal regulators seek to block the deal. Credit: AP Photo/Noah Berger
Microsoft CEO Satya Nadella arrives at the Phillip Burton Federal Building and U.S. Courthouse on Wednesday, June 28, 2023, in San Francisco. Microsoft is defending the company's proposed $69 billion takeover of video game maker Activision Blizzard as federal regulators seek to block the deal. Credit: AP Photo/Noah Berger
Activision Blizzard CEO Bobby Kotick leaves the Phillip Burton Federal Building and U.S. Courthouse in San Francisco on Wednesday, June 28, 2023. Microsoft is defending the company's proposed $69 billion takeover of video game maker Activision Blizzard as federal regulators seek to block the deal. Credit: AP Photo/Noah Berger
Microsoft CEO Satya Nadella arrives at the Phillip Burton Federal Building and U.S. Courthouse in San Francisco, on Wednesday, June 28, 2023. Microsoft is defending the company's proposed $69 billion takeover of video game maker Activision Blizzard as federal regulators seek to block the deal. Credit: AP Photo/Noah Berger
Microsoft CEO Satya Nadella arrives at the Phillip Burton Federal Building and U.S. Courthouse on Wednesday, June 28, 2023, in San Francisco. Microsoft is defending the company's proposed $69 billion takeover of video game maker Activision Blizzard as federal regulators seek to block the deal. Credit: AP Photo/Noah Berger
Lulu Cheng Meservey, EVP for corporate affairs and CCO of Activision Blizzard, leaves the Phillip Burton Federal Building and U.S. Courthouse in San Francisco on Wednesday, June 28, 2023. Microsoft is defending the company's proposed $69 billion takeover of video game maker Activision Blizzard as federal regulators seek to block the deal. Credit: AP Photo/Noah Berger
Activision Blizzard CEO Bobby Kotick leaves the Phillip Burton Federal Building and U.S. Courthouse in San Francisco on Wednesday, June 28, 2023. Microsoft is defending the company's proposed $69 billion takeover of video game maker Activision Blizzard as federal regulators seek to block the deal. Credit: AP Photo/Noah Berger