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 expected to unveil details on a Covid-19 vaccine mandate for businesses in coming days.
This comes just days after The White House issued separate vaccine mandates for federal contractors across the country. Mark Kluger, Founding Partner, employment law firm Kluger Healey joined Cheddar's Opening Bell to discuss.
Christie's has announced the sale of Beeple's first ever physical artwork and video NFT called 'Human One.' The hybrid piece is expected to fetch over $15 million at its upcoming auction. Noah Davis, Christie's Head of Digital Art joined Cheddar's Opening Bell.
The U.S. is introducing a new travel system on November 8, opening up our borders to millions of international visitors. But, it will make reentry more difficult for unvaccinated Americans and reinforce the Biden administration's efforts to increase vaccinations. Adit Damodaran, economist at the travel app Hopper, lays out the new policy and what travelers can expect to pay for airfare this holiday season.
Later today House Republicans will grill Snap, Tiktok and Youtube on how their products affect the mental health of teenagers. It comes after a report revealed that Facebook's photo sharing platform, Instagram, can be harmful to teen's mental health. Rishi Bharwani, Director of Partnerships and Policy, Accountable Tech joined Cheddar's Opening Bell to discuss.
Facebook is changing its company name to Meta. The social media giant is rebranding itself to focus on building the metaverse, a futuristic, immersive experience that would allow people to interact virtually on a daily basis. Steve Sosnick, Interactive Brokers' Chief Strategist, joined Cheddar to discuss the implications of the metaverse and why Facebook is making the move now.
As the White House and Congressional leaders work towards finalizing the legislative framework of the Build Back Better budget deal, paid family leave, one of the hallmarks of President Joe Biden's Social Safety Net agenda, still stands in flux. Molly Day, Executive Director, Paid Leave for the U.S. joined Cheddar's Opening Bell to discuss why the finalization of this bill is imperative.
Gayle Jennings-O'Byrne, Co-Founder of WOCstar Fund, and Tracy Gray, Founder & Managing Partner of The 22 Fund, discuss the mission behind forming The Ally Capital Collab, and how investing in women-led startups can change the U.S. economy.
Rebecca Walser, President at Walser Wealth Management, talks about the strength in tech earnings and the major headwinds to impact markets before years end.
Mark Sebastian, CIO of Karman Line Capital & Founder of OptionPit.com, discusses the inflation headwinds impacting the market and how scrutiny over Facebook's practices could impact revenue for the social media giant going forward.
