Blizzard

On October 11th, 2019, a court issued a temporary restraining order blocking Microsoft from acquiring gaming giant Activision Blizzard. The order was granted in response to a lawsuit filed by a group of shareholders who argued that the acquisition would be detrimental to their investments.

The acquisition, which was announced in September of 2019, would have seen Microsoft purchase Activision Blizzard for $10 billion. Activision Blizzard is the parent company of some of the world’s most popular video game franchises, including Call of Duty, World of Warcraft, and Overwatch. The acquisition would have given Microsoft a huge foothold in the gaming industry and potentially allowed them to dominate the market.

The lawsuit was filed by a group of shareholders who argued that the acquisition was not in their best interests. They argued that the acquisition would lead to a decrease in the value of their investments and that the acquisition was not in the best interests of the company as a whole.

The court agreed with the shareholders and issued a temporary restraining order blocking the acquisition. The order prevents Microsoft from taking any steps to complete the acquisition until a hearing can be held to determine if the acquisition should be allowed to go forward.

The court’s decision is a major setback for Microsoft and could potentially scuttle the acquisition altogether. It is unclear at this time what will happen next, but it is likely that the court will hear arguments from both sides before making a final decision.

The court’s decision is a reminder that acquisitions are not always straightforward and can be subject to legal challenges. It is important for companies to consider all potential legal issues before moving forward with any major acquisitions.