Topline
A California federal court Tuesday granted the Federal Trade Commission’s request by issuing a temporary restraining order blocking Microsoft from closing its nearly $70 billion purchase of video games publisher Activision Blizzard, pausing a deal that has invited regulatory scrutiny both in the U.S. and abroad.
The Microsoft and Activision deal has been mired in regulatory problems in both the U.S. and the … [+]
Key Facts
The Northern District of California federal court ruling halts both Microsoft and Activision from completing the deal with a hearing on the case scheduled for June 22 and 23.
The temporary restraining order will remain in place until the court rules on the FTC’s preliminary injunction against the deal, which the agency filed on Monday.
In its filing, the FTC has expressed concern that Microsoft and Activision may attempt to “consummate” the deal before its internal court issues a ruling on an antitrust suit brought against the deal by the agency.
What To Watch For
As per the original agreement signed between Microsoft and Activision in January 2022, the deadline for the companies to complete the deal is July 18. The scheduling of the hearing for June 22 and 23 leaves the two companies with less than a month to complete the deal, unless they can agree on an extension. Microsoft will have to pay a $3 billion breakup fee to the game publisher if the deal fails to go through.
Source: https://www.forbes.com/sites/siladityaray/2023/06/14/federal-court-grants-temporary-restraining-order-to-halt-microsoft-activision-blizzard-deal/