A U.S. judge has approved the Federal Trade Commission’s (FTC) request to temporarily block Microsoft’s (MSFT) $68 billion U.S. acquisition of video game maker Activision Blizzard (ATVI).
U.S. District Court Judge Edward Davila has scheduled a two-day evidentiary hearing for June 22 and 23 to discuss the FTC’s request for an injunction to block Microsoft’s purchase of Activision Blizzard.
Microsoft had been set to close on the acquisition as early as June 16.
However, the U.S. antitrust regulator says it has concerns about the impact on competition in the video game sector should Microsoft purchase Activision Blizzard and integrate it into the company’s Xbox gaming division.
Activision Blizzard makes some of the most popular video game titles in the world, including the “Call of Duty” “Diablo” and “Guitar Hero” series. The company generates annual revenues of $8 billion U.S.
Microsoft and Activision now have until June 16 to submit legal arguments opposing the FTC’s injunction and explain why the acquisition should be allowed to proceed.
The FTC has argued the transaction would give Microsoft’s Xbox video game console exclusive access to Activision games, hurting competitors such as Nintendo (NTDOY) and Sony (SONY).
Microsoft’s bid to acquire Activision Blizzard was approved by regulators in Europe and the United Kingdom in April of this year. U.S. approval of the deal is the last major hurdle.
Microsoft has offered to sign a legally binding agreement with the FTC to provide “Call of Duty” games to rivals Nintendo and Sony for the next decade.
The administration of U.S. President Joe Biden has ratcheted up its antitrust enforcement measures since taking office in January 2021.
Microsoft’s stock has risen 37% over the last 12 months to $334.29 U.S. per share. Activision Blizzard’s stock has increased 8% in the past year to trade at $80.70 U.S. a share.
