FTC asks appeals court to pause Microsoft deal

STORY: The U.S. Federal Trade Commission on Thursday asked an appeals court to temporarily pause Microsoft’s purchase of "Call of Duty" maker Activision Blizzard.

–just hours after a federal judge rejected a similar request by the FTC.

A judge had already ruled in favor of Microsoft on Tuesday-- saying the Federal Trade Commission had failed to show the acquisition would be illegal under antitrust law.

The FTC appealed the loss a day later in a rare instance of a merger fight taken to the 9th U.S. Circuit Court of Appeals.

Then on Thursday, the FTC asked for an order preventing the deal from closing until the court ruled on a separate stay request.

Any outstanding legal hurdle increases the likelihood the agreement will fall through on July 18, a deadline after which either company will be free to walk away unless they negotiate an extension.

The FTC had asked the court to decide on the pause as soon as possible, noting that a hold on the deal was set to expire before midnight on Friday.

Judge Jacqueline Scott Corley denied that motion late Thursday evening.

The FTC was critical of Corley’s decision, saying that she had underestimated the deal's ramifications, and gave too much credit to Microsoft to deliver on promises to strike deals with rivals.

In an effort to appease the FTC, Microsoft had agreed to license “Call of Duty” to competitors, including a 10-year contract with Nintendo.

In an earlier statement, Microsoft President Brad Smith said he was quote “disappointed” with the FTC’s actions, and vowed to combat any further efforts to delay the deal.