A federal judge will not block Microsoft (MSFT) from closing its $69 billion deal to acquire video game giant Activision Blizzard, a defeat for US regulators who had asked for a temporary injunction while legal challenges to the merger unfold.

The decision not to grant the injunction by the US District Court for the Northern District of California clears the way for Microsoft to consummate a deal that will make it the third largest video game publisher in the world, with control over popular franchises such as “Call of Duty,” “World of Warcraft” and “Diablo.”
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