A federal court docket has issued a short lived restraining order that may stop Microsoft from closing its $68.7 billion deal to accumulate Activision Blizzard — no less than for now. The Federal Commerce Fee filed a grievance on Monday searching for to get the restraining order and a preliminary injunction, and the court docket has agreed to the restraining order whereas it considers that injunction. If the courts grant the injunction as effectively, the FTC would have an opportunity to make its authorized case earlier than any deal will be performed.
On account of as we speak’s order, Microsoft and Activision can not full the acquisition till “after 11:59 p.m. Pacific Time on the fifth enterprise day after the Courtroom guidelines on the FTC’s request for a preliminary injunction” or a date set by the court docket (whichever is later). The court docket has additionally set an evidentiary listening to on the preliminary injunction for June twenty second and twenty third, so it’s extraordinarily unlikely these firms will shut the transaction this month.
Microsoft and Activision introduced the deliberate acquisition in January 2022, and within the months since, it has confronted huge regulatory scrutiny. Though EU regulators permitted the deal in May, UK regulators blocked the deal in April (a call that Microsoft has appealed) and the FTC sued in December in one other try to dam the deal.
Technically, the deal is meant to shut earlier than a July 18th deadline. If the deal isn’t renegotiated to increase that deadline, Microsoft is obligated to pay Activision Blizzard a $3 billion breakup payment.