A federal judge has handed Microsoft a major victory by declining to block its looming $69 billion takeover of video game company Activision Blizzard. Regulators are seeking to ax the deal because they say it will hurt competition. U.S. District Judge Jacqueline Scott Corley said in a ruling that the "FTC has not shown a likelihood it will prevail on its claim this particular vertical merger in this specific industry may substantially lessen competition. Microsoft appeared to have the upper hand in a 5-day San Francisco court hearing that ended late last month. The proceeding showcased testimony by Microsoft Chief Executive Officer Satya Nadella and longtime Activision Blizzard CEO Bobby Kotick, who both pledged to keep Activision's blockbuster game Call of Duty available to people who play it on consoles -- particularly Sony's PlayStation -- that compete with Microsoft's Xbox. Read More: Why Microsoft's Satya Nadella Doesn't Think Now Is the Time to Stop on AI "Our merger will benefit consumers and workers.

SEATTLE – Microsoft plans to buy the powerhouse but troubled video game company Activision Blizzard for nearly $70 billion, its biggest deal ever and one that places a major bet that people will spend more and more time in the digital world. The blockbuster acquisition, announced Tuesday, would catapult the company into a leading spot in the $175 billion gaming industry. Games on virtually every kind of device, from bulky consoles to smartphones, have gained even greater popularity during the pandemic. Technology companies are swarming around the industry, looking for a bigger share of attention and money from the world's 3 billion gamers. In an industry driven by big franchises, Activision makes some of the most popular titles, including Call of Duty and Candy Crush.

Microsoft Corp. agreed to buy Activision Blizzard Inc. in a $68.7 billion deal, uniting two of the biggest forces in video games to create the world's third-biggest gaming company. In its largest purchase ever, Microsoft will pay $95 a share in cash for one of the most legendary gaming publishers, known for titles like Call of Duty and World of Warcraft but which is also grappling with a cultural upheaval over its treatment of women. Activision Chief Executive Officer Bobby Kotick will continue to serve in that role only until the deal closes, a person familiar with the deal said. It's unclear what position, if any, he would take afterward. Once the transaction is completed, the Activision Blizzard business will report to Phil Spencer, who was promoted along with the deal to CEO of Microsoft Gaming.

Microsoft has been on a gaming acquisition tear for the last few years, hoping to give the edge to its Xbox and Game Pass platforms as Sony's PlayStation continues to dominate with exclusive titles. The company previously purchased such notable companies as ZeniMax (AKA Bethesda), Minecraft developer Mojang, Id, Obsidian, Ninja Theory, Rare, Double Fine, and 343 Industries. But the computer giant's next purchase is so big it might shake the foundations of the gaming industry: Activision Blizzard. The news comes from as an official announcement from Microsoft itself, emblazoned with its prospective acquisition's biggest game series like World of Warcraft, Call of Duty, and Candy Crush. The acquisition is valued at $68.7 billion with Microsoft buying Activision Blizzard stock shares at $95 each. The deal is being given a full media blitz with a promotional page, press release, blog posts, open letters to employees, and even a map of the proposed management team.