Injunction grinds Microsoft x Activision Blizzard deal to a sudden halt

The US Federal Trade Commission has requested that Microsoft’s acquisition of Activision Blizzard King be halted briefly while they examine the deal for potential legal challenges. This request has been granted by the US federal courts..

While brief, this is yet another barrier Microsoft will have to jump through before it can finally put its tentacles around the troublesome developer of World of Warcraft, Diablo, and Overwatch. Fortunately for the corporation, this injunction allows only a few days for the FTC to file a proper legal challenge. Otherwise, the settlement offerings can proceed as planned.

The injunction states: “Microsoft and Activision will not close or consummate their proposed transaction or a substantially similar transaction until after 11:59 p.m. Pacific Time on the fifth business day after the Court rules on the request for FTC of an injunction.”

It continues: “Microsoft and Activision will prevent any of their officers, directors, domestic or foreign agents, divisions, subsidiaries, affiliates, partnerships, or joint ventures from closing or consummating, directly or indirectly, the proposed transaction or a substantially similar transaction.” , no movement can be made on the operation until five business days following the precautionary measure.

This, of course, comes after perhaps the biggest bump in the road for the deal, courtesy of the UK’s CMA, which refused to approve the deal. While both Activision Blizzard and Microsoft are trying to appeal this decision, it has made the future of the acquisition murky.

This, in combination with the aforementioned temporary lockdown, has caused the deal to come to a halt. An interesting development, considering that it seemed a sure thing when it rushed through European institutional approval. As has been pointed out by Jay Peters in The Verge, we are gradually approaching the established deadline of July 18 that was initially set in the offer announcement. If we pass that date without the deal closing, Microsoft could have to pay Activision Blizzard $3 billion.

Do you think the deal will win blanket approval before the July 18 deadline? Do you think the FTC will go ahead? Let us know below!