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.
The U.S. market value of the plant-based food industry reached an all-time high last year. According to a new report from the Plant Based Food Association, retail sales of plant-based foods reached $7.4 billion, but questions are arising over whether the industry can sustain the levels of growth it had in the past few years. Julie Emmett, senior director of marketplace development at the Plant Based Food Association, joined Cheddar News' Closing Bell to discuss.
Jimmy Lee, CEO of Wealth Consulting Group, joins Cheddar News' Closing Bell, where he explains why he and his firm remain bullish on the market despite the volatility brought on by the Russia-Ukraine conflict and rising inflation.
Saint Peter's University - a small school in New Jersey school - has skyrocketed to the center of the sports world in a 'Cinderella' story for the record books. The ultimate underdog of the men's March Madness tournament is just the third 15-seed to reach the Sweet 16, after beating Murray State and college basketball powerhouse Kentucky. Throughout the university's historic run, Saint Pete's has reportedly been earning what amounts to millions of dollars in publicity. Amanda Christovich, reporter for Front Office Sports, joins Cheddar News' Closing Bell to discuss.
Kyte, a company that delivers rental cars to customers on-demand, closed an asset-backed credit financing of up to $200 million from Goldman Sachs and the Ares Global Management Alternative Credit Team to accelerate the company's fleet growth and margin expansion. Kyte and its financing providers will create a more robust trip economy that services a more demanding customer with a shared vision of an electrified, autonomous future. Ludwig Schoenack, co-founder and co-CEO of Kyte, joins Cheddar News' Closing Bell to discuss.
Volatility continues to be the name of the game when it comes to crypto. Bitcoin, the most valuable digital token, saw a small jump today - one of several small rallies throughout the month of March. Caitlin Cook, vice president of crypto education company Onramp Academy, joins Cheddar News' Closing Bell to discuss.
Bowery Farming's vertical growing process allows it to cultivate 13 types of greens — and now, strawberries — in a sustainable way that's also faster than traditional farming. Bowery focuses on sustainability from start to finish, using unique technology to provide plants with what they need at the right time while eliminating waste and cutting down on carbon dioxide emissions. Katie Seawell, Chief Commercial Officer of Bowery Farming, joins Closing Bell to discuss the company's vertical farming process, sustainability focus, fixing the food supply chain, and more.
