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In a blow to the Federal Trade Commission and its chair Lina Khan, a federal judge ruled Wednesday that Meta Platforms (NASDAQ:META) may acquire virtual reality company Within Unlimited.
Judge Edward Davila refused FTC request to block transaction, Bloomberg reportedreferring to persons familiar with the matter.
Judge Davila issued his opinion in a sealed decision. However, Davila put the deal on hold for a week so the FTC could consider the appeal, the news outlet added.
In July, it was reported that Khan had overruled his staff, which had recommended against filing a lawsuit to stop the proposed $400 million transaction. Part of the FTC’s complaint touched on Supernatural competing with Meta’s own Beat Saber app, a rhythm game in which users hit targets to the beat of music.
Meta ( META ) and the FTC did not immediately respond to Seeking Alpha’s request for comment.
Last month, Meta ( META ) postponed a deal to buy Within Unlimited, maker of the popular virtual reality fitness game, Supernaturalin a month.
Mark Zuckerberg-led Meta ( META ) announced in October 2021 that it had agreed to acquire Within Unlimited, a day after changing the company’s name from Facebook.
Meta Platforms ( META ) is scheduled to report fourth quarter results after the close of trading on Wednesday.