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Microsoft’s Activision Blizzard Deal Clears Final Regulatory Hurdle

After over two years of legal wrangling, the Federal Trade Commission (FTC) has officially withdrawn its attempt to block Microsoft’s landmark acquisition of Activision Blizzard. The move follows the Ninth U.S. Circuit Court of Appeals’ decision on May 7, 2025, which upheld a lower court’s ruling denying the FTC’s request to halt the $69 billion transaction. This judgment has now finalized Microsoft’s ownership of one of the most significant players in the gaming industry.

Originally announced in late 2022, the acquisition faced significant scrutiny from regulators across the globe. The central concern involved the potential for major franchises like Call of Duty to be made exclusive to Xbox platforms, potentially disadvantaging PlayStation and PC users.

To address competition-related issues, particularly in the United Kingdom, Microsoft took the step of transferring cloud gaming rights for Activision Blizzard’s titles to Ubisoft. This action helped satisfy objections raised by the UK’s Competition and Markets Authority (CMA) and allowed the deal to move forward.

FTC Closes Its Case

The FTC’s official statement, filed on May 22, 2025, confirmed that it would no longer pursue legal action. The Commission concluded that “the public interest is best served” by ending its litigation. The court’s earlier affirmation of the District Court’s decision, denying the injunction, effectively left no further route for blocking the deal.

This brings a close to a contentious regulatory saga that began shortly after the deal was proposed. While European and Asian regulators cleared the acquisition with conditions, the FTC held firm until its recent decision to drop the case.

A Look at Xbox’s Expanded Franchise Roster

With the acquisition complete, Microsoft has significantly expanded its portfolio of iconic game franchises. Below is a snapshot of major titles now under the Xbox banner:

Call of Duty

The globally recognized Call of Duty franchise has been a central point in discussions surrounding the acquisition. With its consistent presence atop annual sales charts, the series remains a cornerstone of Activision’s success. The latest installment, Modern Warfare 3, was released on November 10, 2023, bringing back classic multiplayer maps for longtime fans.

Diablo

Another major property acquired through the deal is Diablo. The release of Diablo IV in June 2023 marked a major milestone for the action RPG genre. With more than ten million players in its first month, the game has enjoyed massive popularity. Blizzard plans to support it with annual expansions moving forward.

Halo

Although already part of Xbox’s legacy, Halo remains one of its most important properties. The latest entry, Halo Infinite, revitalized interest in the series with strong campaign and multiplayer elements. Microsoft showcased Master Chief prominently in promotional materials surrounding the acquisition.

World of Warcraft

World of Warcraft, which debuted in 2004, continues to be a foundational title in the MMO space. Its most recent expansion, Dragonflight, launched in 2022. Blizzard is preparing to release the game’s tenth expansion in celebration of its 20th anniversary, promising significant new content.

Deal Completed in Late 2023

Despite facing global regulatory challenges, Microsoft finalized its acquisition of Activision Blizzard in October 2023. The final green light came after addressing antitrust concerns in various markets, with cloud gaming rights and platform parity commitments being key negotiation points.

Had the FTC’s appeal succeeded, it could have delayed or even derailed the final steps of the merger. However, with the legal path now fully cleared, Microsoft can focus on integrating Activision Blizzard’s resources and talent into its broader gaming ecosystem.

This pivotal moment not only strengthens Microsoft’s presence in the gaming industry but also reshapes the competitive landscape for publishers, developers, and players alike.

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