Pixel P&L: Court Dismisses FTC's Bid to Block Microsoft's Activision Blizzard Merger
Welcome to another Pixel P&L edition. This issue takes 6 minutes to read.
If you only have one, here are the 5 most important things:
Tripledot Studios acquires AppLovin's entire game portfolio for $800 million — full details below.
Appeals Court dismisses FTC's attempt to block Microsoft's $68.7B Activision Blizzard merger.
BLAST expands operations with a New York City office to strengthen US market presence.
Freaks 4U Gaming partners with gamescom 2025 to launch the new Pro Arena esports hub.
Diablo 4's Berserk cosmetic bundle costs more than double the price of the entire game — learn more in our Did You Know section.
Let's get into it.
Appeals Court Dismisses FTC's Bid to Block Microsoft's $68.7B Activision Blizzard Merger
Last week, the Ninth Circuit Court of Appeals rejected the Federal Trade Commission's attempt to unwind Microsoft's $68.7 billion acquisition of videogame publisher Activision Blizzard, dealing another setback to the agency's antitrust agenda.
The court upheld Judge Jacqueline Scott Corley's 2023 ruling, finding the FTC failed to demonstrate that the merger would substantially lessen competition in the gaming market. The three-judge panel determined that the district court "applied the correct legal standards and did not abuse its discretion."
In rejecting the FTC's concerns about Microsoft's potential dominance in cloud gaming, the court noted that all major manufacturers employ first-party exclusives, with Sony and Nintendo having "significantly higher numbers of exclusive games" than Microsoft.
The ruling comes months after the transaction closed, following regulatory approvals in key markets worldwide. The FTC could still appeal to the Supreme Court or resume its suspended in-house administrative case.
Both Microsoft and the FTC have not commented on the decision.
Tripledot Studios Acquires AppLovin's Game Portfolio for $800 Million
Tripledot Studios has agreed to purchase AppLovin's entire gaming portfolio for $800 million, a move that will transform the mobile game developer into a significant industry player with projected annual gross revenues approaching $2 billion.
The deal, structured as half cash and half equity, will give AppLovin a minority stake in Tripledot. The acquisition includes 10 studios, including Machine Zone, PeopleFun, and Lion Studios, allowing Tripledot to expand its footprint in the U.S. and Asian markets while reaching approximately 25 million daily users.
Tripledot's CEO indicated this acquisition elevates the company from challenger to global industry leader. AppLovin's chief executive acknowledged the strategic shift, noting the company's core identity was never truly aligned with game development.
The transaction, expected to close in summer 2025 pending regulatory approval, will diversify Tripledot's revenue streams, with no single game accounting for more than 10% of total revenue.
⚡Quick Bytes
Freaks 4U Gaming Partners with gamescom 2025 to Launch Pro Arena
Berlin-based Freaks 4U Gaming announced a partnership with gamescom 2025 organizers to create the Pro Arena, a new centralized hub for esports at the annual gaming festival in Cologne, Germany. The collaboration will establish a 2,500 m² space hosting esports competitions, community events, and interactive entertainment. The arena will include showcase areas for publishers, networking spaces, business facilities, and VIP sections. Financial terms of the partnership were not disclosed.
BLAST Brings Major Dota 2 Tournament to Singapore
Danish esports organizer BLAST announced its fourth Slam Dota 2 tournament will be held at Singapore Indoor Stadium from November 7-9, 2025. The $1 million competition, featuring 10 teams, marks Singapore's first major Dota 2 event since 2022. Ticket information for the 12,000-seat venue will be released later.
Esports Organizer BLAST Expands with New York City Office
Tournament organizer BLAST announced that it will open a New York office to strengthen access to U.S. markets and partners. Chief Business Officer Leo Matlock will relocate from Copenhagen to lead the expansion. The location will serve as BLAST's North American hub, overseeing six major U.S. esports events planned for 2025-2026.
Netmarble Posts $429M Revenue, $55M Net Profit in Q1
South Korean gaming giant Netmarble reported $429 million in Q1 2025 revenue with $34 million operating profit and $55 million net profit. North America generated 46% of revenue, with "Marvel Contest of Champions" and "Solo Leveling: ARISE" among top performers. The company will launch "Game of Thrones: Kingsroad" on May 21st globally, with five additional titles planned for 2025's second half.
⚔️Side Quest
📺 Watch: Thomas Game Docs delivers a chronicle of Mario Kart's 30-year musical evolution, documenting how each composer shaped the series' identity from Oka's 16-bit funk to the full orchestral arrangements of modern titles.
🎮 Play: Grab Crusader Kings III while it's 70% off! Trust us, you'll get hooked building your medieval dynasty, plotting against rivals, and watching your family drama unfold in ways that'll have you saying "just one more turn" until 3am.
📚 Read: Chandana Ekanayake's thread on game studio management offers invaluable insights from seven years of industry experience. He gives practical advice on team building, managing expectations, understanding the role of luck, and more.
💡Did You Know
Did you know that Diablo 4's Berserk-themed cosmetic bundle costs more than double the price of the entire game experience? While gamers can purchase both the base game and its Vessel of Hatred expansion for a combined total of approximately $69.99/£59.99, the limited-time Berserk collaboration skins will set players back a whopping $149.99/£125.99! That's over twice the price for cosmetic items compared to the actual gameplay content!
📜 Quote of the Day
“I don't know if you've ever let someone down, got your ass kicked or straight up failed, but those are the moments that define us. They push you further than you've ever thought possible, and force you to make choices... no matter what the cost."
-Cole MacGrath, Infamous 2
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