The Federal Trade Commission (FTC) has dropped its administrative challenge that aimed to block Microsoft's acquisition of Activision Blizzard. The FTC tried to stop the USD 68.7 billion deal in two ways: by filing this case last December before its own administrative judge, who was supposed to hear it on August 2, and by seeking a temporary restraining order and preliminary injunction from a US federal court. However, a US federal judge denied the injunction request earlier this month, while an appeals court also refused its request to put an emergency hold on the acquisition. The FTC is still appealing the preliminary injunction denial.
Microsoft and Activision Blizzard have not finalized the deal yet. They have extended their deadline until October 18. The FTC could still re-file its administrative case, while Microsoft continues to face scrutiny from the UK's Competition and Markets Authority. However, Xbox head Phil Spencer supposedly told employees he is optimistic that the deal will go through soon.