US Judge Temporarily Blocks Microsoft’s Activision Deal

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Microsoft’s $69 billion Activision Blizzard merger has been temporarily blocked by a federal judge in California after the Federal Trade Commission (FTC) filed an emergency motion on Monday to pause the deal, Bloomberg reports. The US judge agreed that a temporary restraining order is necessary as the FTC builds on its case to put a permanent stop to Microsoft’s acquisition.

As a result of the ruling, Microsoft and Activision cannot move forward with the merger and must wait five business days after the court decides on the FTC’s request for a permanent pause. An evidentiary hearing on the long-term injunction is scheduled for June 22nd and 23rd.

In a statement to The Verge, Microsoft spokesperson David Cuddy said, “Accelerating the legal process in the US will ultimately bring more choice and competition to the gaming market.” Cuddy added, “A temporary restraining order makes sense until we can receive a decision from the Court, which is moving swiftly.”

Despite the European Commission’s approval in May, Microsoft faces a huge challenge with regulators to complete the deal to acquire Activision Blizzard. UK regulators vetoed the deal in April, but Microsoft is preparing to appeal the decision.

If the deal is not renegotiated to extend the July 18th deadline for its closure, Microsoft will have to pay a $3 billion breakup fee to Activision Blizzard.

Posted by Abiodun

Passionate about Technology and everything concerning it. Avid Gamer and Music Lover. Loves Chelsea FC. Overall, a nice guy.

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