Today is an important day for Microsoft’s (NASDAQ: MSFT) $69 billion acquisition of gaming developer Activision Blizzard (ATVI) as the U.S. Federal Trade Commission (FTC) will argue in Federal Court in favor of a preliminary injunction to temporarily block Microsoft’s acquisition of ATVI. The FTC intends to stop the deal from closing before the U.S. government’s case against the deal is heard.
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If the Court puts a pause on the deal, both MSFT and ATVI will have to agree to extend the deal past its original termination date of July 18. According to a Reuters report, the FTC fears that without a preliminary injunction, this deal “could alter Activision’s operations and business plans” and could allow MSFT access to sensitive business information.
This acquisition has faced plenty of hurdles with the British antitrust authorities blocking the acquisition in April while the EU approved the deal back in May.
FTC’s objection to the deal arises as the regulatory body believes that this acquisition would give MSFT the “ability and increased incentive to withhold or degrade Activision’s content in ways that substantially lessen competition.”
Analysts are bullish about MSFT stock with a Strong Buy consensus rating based on 30 Buys, four Holds, and one Sell.
