A judge has granted a temporary restraining order that prevents Microsoft from finalizing its $68.7 billion acquisition of Activision Blizzard. The Federal Trade Commission (FTC) requested the restraining order and a preliminary injunction, which the court is considering. The order stipulates that the acquisition cannot proceed until the court rules on the FTC’s request or a later date specified by the court. An evidentiary hearing for the preliminary injunction is scheduled for June 22nd and 23rd, making it highly unlikely for the deal to be completed this month.
Microsoft spokesperson David Cuddy expressed support for expediting the legal process in the US to promote competition in the gaming market. The acquisition, announced in January 2022, has faced significant regulatory scrutiny, with UK regulators blocking the deal in April (which Microsoft is appealing) and the FTC suing in December to halt the transaction. The original deadline for closing the deal is July 18th, and if it fails to meet that deadline, Microsoft will be obligated to pay a $3 billion breakup fee to Activision Blizzard.