Activision Blizzard stock surges 11% after judge rules on Microsoft deal

Shares of Activision Blizzard popped 11% Tuesday aft a judge denied the Federal Trade Commission's question for a preliminary injunction to halt Microsoft from acquiring the video crippled maker.

Activision Blizzard's banal reached a 52-week precocious of $92.91 per share, and the determination reflects the biggest leap for the video crippled steadfast since the woody was archetypal announced connected Jan. 18, 2022. Activision Blizzard shares are besides connected way for their highest adjacent since July 2021.

Microsoft agreed to bargain Activision Blizzard for $68.7 billion, oregon $95 per share, but the acquisition has faced absorption successful the U.S. and overseas implicit concerns that it could stifle competition.

A U.S. District Court for the Northern District of California issued the determination successful favour of the companies Tuesday.

"For the reasons explained, the Court finds the FTC has not shown a likelihood it volition prevail connected its assertion this peculiar vertical merger successful this circumstantial manufacture whitethorn substantially lessen competition," Judge Jacqueline Scott Corley wrote in her decision.

But the woody isn't wholly successful the clear. The FTC tin present bring the determination to the U.S. Court of Appeals for the 9th Circuit, and Microsoft and Activision Blizzard indispensable find a mode guardant to resolve opposition from the Competition and Markets Authority successful the United Kingdom.

"We're optimistic that today's ruling signals a way to afloat regulatory support elsewhere astir the globe, and we basal acceptable to enactment with UK regulators to code immoderate remaining concerns truthful our merger tin rapidly close," Activision Blizzard CEO Bobby Kotick wrote successful a memo to employees Tuesday.

--CNBC's Jordan Novet contributed to this report