Microsoft-Activision Deal Temporarily Blocked by Judge (3)

Microsoft Corp.’s $69 billion acquisition of Activision Blizzard Inc. was temporarily blocked by a federal judge in California who said a temporary restraining order was necessary to maintain the status quo while the Federal Trade Commission challenges the deal.

The FTC, which sought to block the deal in its in-house court, filed an emergency motion to halt the merger on Monday.

The ruling holds the two companies apart until five days after the court rules on a more permanent pause on the deal, US District Judge Edward J. Davila wrote.

An evidentiary hearing on the longer-term injunction is set to be held in San Francisco on June 22 and 23.

The FTC filed suit last year at its in-house court, but the agency’s administrative judge lacks the ability to order a pause to the deal.

A Microsoft spokesperson said the order was expected and lauded the court for moving swiftly toward a resolution of the case.

The FTC declined to comment.

US authorities are not the only ones who have challenged the deal. UK competition regulators vetoed the merger, though Microsoft is appealing that order.

The case is Federal Trade Commission v. Microsoft Corp., 3:23-cv-02880, US District Court, Northern District of California (San Francisco).

WATCH: Microsoft’s video gaming chief Phil Spencer discusses the future of Xbox and why remains confident in the Activision merger.

Source: Bloomberg

(Updates to add comments from Microsoft, FTC beginning in sixth paragraph)

To contact the reporters on this story:
Daniel Papscun in Arlington at dpapscun4@bloomberg.net;
Leah Nylen in Washington at lnylen2@bloomberg.net

To contact the editors responsible for this story:
Misyrlena Egkolfopoulou at megkolfopoul@bloomberg.net

Joe Schneider, Leah Nylen

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