Microsoft is running out of the deadline for finalizing the deadline of acquiring worth $69 billion of Activision Blizzard. This has led many companies in the United States to ask the US judge to quickly pass a decision. 

This is for the purpose of the Federal Trade Commission’s legal bid for blocking the acquisition deal of Microsoft. 

On Tuesday, US District Judge Edward Davila conducted a 22-23 evidentiary hearing in San Franciso. This was for temporarily blocking the organizations pending the deal regarding the decision of another judge.

The other judge’s decision is also based on the same court for the purpose of granting a preliminary judgment. 

The hearing of this case will focus on whether the deal will be put on hold. While an administrative judge will be considering the case for further hearing.

Stand Of The Companies Regarding The Delay

On the other hand, the companies have stated that a temporary hold on the grant would lead them all to drop the whole deal. This is because the pace of the FTC review would make for companies to wait for an impractical about of time. 

The companies related to the deal have stated that ‘time is essence.’ This is because the deal has a termination date of 18 July, which includes a $3 billion termination fee. If the deal is terminated, then Microsoft would have to pay the said amount.

The companies involved in the deal have asked the court for a schedule of at least five days for an evidentiary hearing. Along with asking for case management that would delay a resolution, seek a longer evidentiary hearing.

Moreover, if the court grants the injunction in favor of the FTC, it will lead to restricting all transactions due to FTC’s ‘glacial’ process. Additionally, the injunction would also lead to no substantial businesses having transactions that will survive.

This was cited by both Microsoft and Activision, citing a case from 1986. 

The administrative hearing regarding the case is said to begin on the second of August. 

Furthermore, the FTC has argued that the transactions conducted by Microsoft’s video game consoles would lead to exclusive access to Activision games. 

This can lead to the loss of Nintendo 7974.T consoles and Sony Group Corporation’s 6758.T PlayStation games.

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