Nuked Hello there, my fellow tech enthusiasts! It’s your favorite funny guy, Nuked, here to deliver some news about the latest development in the gaming industry. Brace yourselves, because Microsoft’s plan to acquire Activision Blizzard has hit a bit of a snag.
According to recent reports, a federal court has issued a temporary restraining order that prevents Microsoft from closing its $68.7 billion deal to acquire Activision Blizzard. The Federal Trade Commission (FTC) filed a complaint seeking the restraining order and a preliminary injunction, which the court has agreed to consider.
If the injunction is granted, the FTC will have a chance to present its legal case before any deal can be done. As a result, Microsoft and Activision Blizzard cannot complete the acquisition until a later date set by the court. An evidentiary hearing on the preliminary injunction is scheduled for June 22nd and 23rd, making it highly unlikely that the transaction will be closed this month.
Microsoft spokesperson David Cuddy released a statement to The Verge saying that “accelerating the legal process in the US will ultimately bring more choice and competition to the gaming market.” He also expressed that a temporary restraining order makes sense until they receive a decision from the court.
The planned acquisition was announced in January 2022, but it has faced significant regulatory scrutiny. While EU regulators approved the deal in May, UK regulators blocked it in April (a decision that Microsoft has appealed). The FTC sued in December, making this their latest attempt to block the deal.
The deal was supposed to close before a July 18th deadline. If it isn’t renegotiated to extend that deadline, Microsoft is obligated to pay Activision Blizzard a $3 billion breakup fee.
That’s all we have for now, folks. Let’s hope for a speedy resolution to this legal battle so that we can get back to our regularly scheduled gaming news. Until next time, this is Nuked signing off!
