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.
Walmart, which last month reported lackluster earnings, is making a big bet on enhancing its warehouse technology. The big box giant will open new facilities that use automation in order to fill more orders and deliver them within a competitive timeframe, like same-day or two-day delivery in order to compete with e-commerce king Amazon. Will these efforts give Walmart an advantage, and maybe even help it beat Amazon in multiple categories? Arun Sundaram, senior equity analyst at CFRA Research, joins Closing Bell to discuss.
Major business leaders are taking in the current U.S. economic backdrop — including inflation and a first-quarter GDP contraction — and voicing pessimistic outlooks about what the economy will do. Meanwhile, the question on everyone's mind is still whether or not we will enter a recession, and when. Mike 'Mish' Shedlock, an investment advisor at Sitka Pacific Capital Management, says on Closing Bell that business leaders aren't anxious enough, and that it's likely the U.S. will enter a recession early in the third quarter of this year.
Los Angeles Rams wide receiver Cooper Kupp is partnering with eye-drop brand Pataday to help those struggling with allergies — such as himself. The Super Bowl LVI MVPjoined Cheddar News to discuss his own struggle with seasonal allergies. “It's right when football's starting back up, I feel like I get so excited to finally be back playing the game, and then, you know, spring comes around and completely knocks me out," he said.
After a week of changes including a ticker change and longtime COO Sheryl Sandberg stepping down, Meta's future may seem uncertain. Cheddar News anchors Kristen Scholer and Ken Buffa broke it all down a the stock dropped around 4 percent on Friday amid a flurry of speculation around the company formerly known as Facebook.
The Week's Top Stories is a guided tour through the biggest market stories of the week, from winning stocks to brutal dips to the facts and forecasts generating buzz on Wall Street.
Buy now, pay later — or point-of-sales loans — might be making it difficult to get a handle on your credit. These companies typically do not report payment history during transactions, so without this data going to credit scoring companies, it makes it difficult to know how many loans a customer still needs to pay. Experts are recommend paying off these debts as soon as possible.
A new survey from LendingClub and Pyments.com shows that more than one-third of Americans making $250,000 are living paycheck to paycheck. The alarming trend is being found mostly among millennial earners.
As manufacturing and shipping continue to face staffing challenges, robotic replacements are increasingly on their way to plug the gaps. Cheddar's Alex Vuocolo takes a deeper look at the latest trend.
