A federal judge in San Francisco has ruled against the US Federal Trade Commission's (FTC) motion to block Microsoft's acquisition of video game publisher Activision Blizzard. The $69 billion deal could go forward as a result. The FTC had sought a preliminary injunction to halt the merger, citing concerns over competition in the gaming market.

The judge's decision has stirred hopes for Microsoft's acquisition, but there are still obstacles to overcome. The FTC can appeal the decision to a federal appellate court, and the companies must resolve opposition from the Competition and Markets Authority in the United Kingdom. The UK regulator has already blocked the deal due to concerns of stifling competition in online game streaming.

Microsoft and Activision Blizzard expressed their satisfaction with the ruling. Microsoft stated that they are committed to addressing regulatory concerns, while Activision Blizzard CEO Bobby Kotick emphasized the potential for increased competition as a result of the merger.

The decision represents a setback for the FTC's push to more aggressively monitor tech mergers. The agency has sued several major tech companies but has had limited success thus far.

The timeline for the completion of the deal remains uncertain, pending any further legal actions and negotiations with UK regulators.