Keep on Buying Microsoft Stock, Says Wedbush Following Court Victory in Activision-Blizzard FTC Trial

Microsoft (NASDAQ:MSFT) had a big win yesterday after a California District Court judge denied the FTC’s request to stop its acquisition of Activision Blizzard. Microsoft intends to acquire the maker of blockbuster video games such as Call of Duty and Candy Crush for $69 billion.

After listening to arguments from both the FTC and the tech giant, Judge Jacqueline Scott Corley chose to deny the regulator’s plea for a preliminary injunction. The FTC argued that Microsoft would probably pull Call of Duty from rival consoles, but that argument was rejected by the judge who pointed to an executed agreement between Microsoft and Nintendo, in which Microsoft has guaranteed to provide the title for the next decade. Moreover, the judge stated Microsoft would not have any financial motivation to remove competitors’ access to the game. This was emphasized by mentioning that the agreement approved by Microsoft’s board included generating revenue by selling Activision titles on other gaming platforms.