Federal Court Asked to Temporarily Block Microsoft-Activision Merger

Federal Court Asked to Temporarily Block Microsoft-Activision Merger

A group of concerned shareholders have filed a lawsuit to block the proposed merger between Microsoft and Activision Blizzard. On Monday, the group requested a federal court to issue a temporary restraining order to halt the merger, arguing that it would result in unfair competition in the gaming industry.

Shareholders' Concerns

According to the shareholders' lawsuit, the proposed acquisition would create an unfair advantage for Microsoft to dominate the gaming industry. The group argues that Microsoft's acquisition of the game development company would limit competition and reduce the quality of games available to consumers in the marketplace.

In addition, the shareholders claim that the proposed merger would cause harm to their financial interests. The group argues that the proposed acquisition at $68.7 billion grossly undervalues Activision Blizzard, and that the shareholders are not being offered a fair price for their investments.

Microsoft and Activision Blizzard Response

Microsoft and Activision Blizzard have yet to comment on the lawsuit. However, industry experts predict that they will argue that the proposed merger is necessary for growth and innovation in the gaming industry.

Regulatory Approval

The proposed merger between Microsoft and Activision Blizzard is still pending regulatory approval. However, the companies have already obtained approval from the Committee on Foreign Investment in the United States.

If the proposed merger goes through, it would be one of the largest in the history of the gaming industry. Activision Blizzard is responsible for some of the most popular games in the world, including World of Warcraft, Call of Duty, and Candy Crush. The acquisition would give Microsoft access to a massive player base in addition to some of the most popular games in the market.

Conclusion

The lawsuit filed by concerned shareholders will likely lead to further legal proceedings that could delay or potentially block the proposed merger between Microsoft and Activision Blizzard. As of now, the decision lies in the hands of the federal court to either grant or deny the temporary restraining order. The impact of this lawsuit on the gaming industry is still unknown, but it could result in significant changes in the way large corporations seek acquisitions.