Microsoft, Activision Blizzard Ask US Judge To Speed Up FTC Proceedings To Block $69-Billion Merger
Microsoft and Activision requested the court to allocate at least five days for the evidentiary hearing, starting from June 22 and continuing through the week of June 26.
Microsoft and Activision Blizzard are racing against the clock to meet the deadline for their $69 billion acquisition deal as they urgently requested a US judge to expedite the legal proceedings initiated by the Federal Trade Commission (FTC) to block the merger. US District Judge Edward Davila had previously scheduled an evidentiary hearing on June 22-23 in San Francisco and temporarily halted the completion of the deal until another judge on the same court decides on whether to grant a preliminary injunction.
The upcoming hearing will primarily focus on whether to suspend the deal while an administrative judge reviews the case. However, the companies warned that if a temporary hold is granted, they would be forced to abandon the acquisition due to the sluggish pace of the FTC review, which makes waiting impractical.
In a court filing, the companies emphasised the urgency, stating that the agreement has a termination date of July 18 and includes a $3 billion termination fee that Microsoft would be obligated to pay.
"It is crucial to understand that the only decision that matters within these challenging time constraints is the ruling on the preliminary injunction," the filing stated.
The FTC declined to provide any comment on the matter, as reported by Reuters.
Microsoft and Activision requested the court to allocate at least five days for the evidentiary hearing, starting from June 22 and continuing through the week of June 26. They also proposed a case management conference on Thursday, emphasising that they were not seeking to prolong the process by requesting an extended hearing.
The companies argued that if the FTC's preliminary injunction is granted, it would effectively block the entire transaction due to the excessively slow pace of the FTC's procedures, which no substantial business transaction could withstand. They referenced a 1986 case in support of their argument.
Meanwhile, the FTC's administrative proceeding hearing is scheduled to commence on August 2.
The FTC has expressed concerns that the acquisition would grant Microsoft's Xbox video game console exclusive access to Activision games, leaving Nintendo consoles and Sony Group Corp's PlayStation at a disadvantage.
While the acquisition was approved by the European Union in May, British competition authorities had previously blocked the takeover in April.
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