Microsoft's planned $69 billion purchase of video game company Activision Blizzard was blocked by a federal judge Tuesday, giving more time for an antitrust review of the deal.
U.S. District Judge Jacqueline Scott Corley in San Francisco ruled in support of a temporary restraining order sought by the Federal Trade Commission that will stop Microsoft from closing the deal.
In a court filing Monday, the commission had sought both a restraining order and injunction to stop Microsoft’s acquisition of the California company behind hit games such as Call of Duty, World of Warcraft and Candy Crush Saga.
Microsoft, maker of the Xbox game system, has spent months trying to win worldwide approval for the merger. While a number of countries have approved the acquisition, regulators for two important economies — the U.S. and the U.K. — have taken action to stop it, arguing it could suppress competition in the video game market.
The judge said her order temporarily blocking the deal “is necessary to maintain the status quo” while the Federal Trade Commission's legal cases against it are still pending. The bar for issuing an urgent restraining order is lower than it is to issue a preliminary injunction blocking the deal. A hearing on the commission's request for an injunction is set for June 22.
The commission said it brought its case to a federal court this week because it was concerned that Microsoft was trying to imminently close the deal before the trial begins, which would make it "difficult, if not impossible” to reverse course if the acquisition was later found to be illegal.
Microsoft said in a written statement late Tuesday that “accelerating the legal process in the U.S will ultimately bring more choice and competition to the gaming market."
“A temporary restraining order makes sense until we can receive a decision from the Court, which is moving swiftly,” the company said.
President Biden's push for electric vehicles is doing more than trying to hold off climate change as it also hopes to revive American manufacturing jobs. The latest company to open an EV charging production plant in the U.S. is Australia-based Tritium, looking to open its new Lebanon, Tennessee, facility in the fall of 2022. It's expected to create at least 500 jobs in the region and reach a production capacity of 10,000 charging units per year. Jane Hunter, CEO and executive director of Tritium, joined Closing Bell to discuss the plant, production capacity, and working with the Biden administration. "The policies that they put in place have directly driven demand for our fast charging products," she said. "Discussions that we have are just incredibly positive because this administration wants to have an electric superhighway that runs all across the country so that it's open equitably for all people to drive electric vehicles."
Samsung unveiled its latest product lineup, including a new family of Galaxy S22 smartphones featuring the S22 Ultra with a larger screen, more powerful camera, and the Samsung S Pen stylus. The company also revealed its latest tablet, the Tab S8 Ultra, featuring a 14.6" screen, expanded storage, and 4K video capability. Cheddar News was able to showcase each device as Allison Johnson, reviews writer at The Verge, joined Closing Bell to discuss the new releases, the standout features, and more.
Shares of Canadian cannabis giant Canopy Growth surged after the company reported Q3 earnings Wednesday morning, with shares up more than 15 percent at the close of the day's trading session. Despite net revenue declining year-over-year, Canopy beat analyst expectations and has ramped up efforts to develop a "THC ecosystem' in the U.S. Canopy Growth's CEO, David Klein, joined Cheddar News' Closing Bell to discuss the report. He noted that its brands Storz & Bickel vaporizers and BioSteel beverages showed record growth.
Commercial property ownership platform withco recently raised $32 million across a seed and Series A funding round. The company purchases properties and then rents them back to small business owners and works to transition them into full ownership. Founder and CEO Kevin Song says withco was inspired by his family's experience of operating a Brooklyn grocery store for two decades and being forced to shutter the business due to a doubling in rent by a new landlord. Now, Song says his mission is to help small business owners become commercial property owners, in a way that's simple and affordable. Song joined Cheddar News' Closing Bell to discuss.
David Nelson, Chief Strategist at Belpointe, joins Cheddar News' Closing Bell, where he says that Wednesday's market movement shows a rotation back into the industries that were hit hard in January, but says his eyes are firmly fixed on the January CPI data set to be released Thursday.
Earlier this week, Peloton announced a change in its C-suite, with new chief executive Barry McCarthy telling the company's remaining staff in an email that he’s, 'here for the comeback story.' Greg Martin, Co-Founder of Rainmaker Securities, joins Cheddar's Closing Bell where he discusses how difficult are Peloton's challenges will be to overcome, especially after the company recently laid off approximately 20% of its staff.
