US Federal Trade Commission seeks temporary suspension of Microsoft and Activision Blizzard merger

Yesterday we reported that the US Federal Trade Commission (FTC) had filed requests for a temporary restraining order and preliminary injunction against the Microsoft and Activision Blizzard deal.

Today, events have developed.

Here's What We Know

Reputable media outlets are reporting that the FTC has officially halted the merger of the two US gaming giants.

The ban will last until a subsequent court ruling on the FTC's request for a preliminary injunction, which will be an interim decision until a full trial, during which the fate of the biggest deal in gaming industry history will be decided.

The FTC is taking these steps because it sees a threat to Microsoft's potential monopoly in the cloud services market.

Final hearings are scheduled for 22 and 23 June.

Microsoft's situation is complicated by the fact that if the deal with Activision Blizzard is not completed by July 18, 2023 (and it can't be), the company will have to pay Bobby Kotick $3 billion in compensation.

Source: The Verge