The U.S. Federal Trade Commission has asked to put Microsoft’s acquisition of Activision Blizzard King on hold while they review the deal for potential legal challenges. The request has been granted by a U.S. federal court.
While short, it’s another hurdle Microsoft must overcome before it can finally tackle the troubled developers of World of Warcraft, Diablo, and Overwatch. Thankfully for the company, the ban only gives the FTC a few days to mount a proper legal challenge. Failing that, the transaction’s trade can continue as planned.
The injunction states: “Microsoft and Activision may not close or consummate their proposed transaction, or a substantially similar transaction, after 11:59 p.m. PT on the fifth business day after the court’s decision on the FTC’s preliminary injunction request.”
It continues: “Microsoft and Activision Blizzard shall prevent any of their officers, directors, domestic or foreign agents, divisions, subsidiaries, affiliates, partnerships, or joint ventures from directly or indirectly closing or consummating the proposed transaction or substantially similar transactions.” In short, within five working days of enforcement, no progress can be made on transactions.
Of course, this comes after perhaps the biggest hurdle in the deal’s path, thanks to the refusal of the UK’s CMA to approve the deal. While both Activision Blizzard and Microsoft have attempted to appeal the decision, it has dimmed the future of the acquisition.
This combined with the aforementioned temporary blockade resulted in a halt to trading. It’s an interesting development, considering it looked like a sure thing when it breezed through European agencies for approval. As The Verge’s Jay Peters noted, we’re approaching the July 18 deadline originally set for the deal announcement. If we get past that date without a deal, Microsoft may have to pay Activision Blizzard $3 billion.
Do you think the deal will get full approval before the July 18 deadline? Do you think the FTC will pursue it further? Let us know below!
