Microsoft buys Activision Blizzard, the maker of Candy Crush and Call of Duty for $70 billion, to boost firms’ competitiveness in mobile gaming and virtual-reality technology.

The $68.7 billion deal will turn Microsoft, maker of the Xbox gaming system, into one of the world's largest video game companies. The deal also helps the company to compete with tech rivals such as Meta, formerly Facebook, in creating immersive virtual worlds for both work and play.

If the deal survives scrutiny from the US and European regulators in the coming months, it could be one of the biggest tech acquisitions in history. Dell bought data-storage company EMC in 2016 for around $60 billion.

Activision has been buffeted for months by allegations of misconduct and unequal pay. Microsoft CEO Satya Nadella addressed about the issue.

Nadella says, “the culture of our organization is my Number one priority, it’s critical for Activision Blizzard to drive forward.”

Activision disclosed last year has been investigated by the Securities and Exchange Commission over complaints of workplace discrimination and in September settled claims brought by U.S. workforce discrimination regulators. California's civil rights agency sued the Santa Monica-based company in July, citing a ‘frat boy’ culture that had become a ‘breeding ground for harassment and discrimination against women.’

Wall Street saw the acquisition as a big win for Activision Blizzard Inc. and its shares soared 25 percent in trading this week, making up for losses over the past six months since California's discrimination lawsuit was filed, shares of Microsoft slipped about two percent.

Last year, Microsoft spent $7.5 billion to acquire ZeniMax Media, the parent company of video game publisher Bethesda Softworks, which is behind popular video games The Elder Scrolls, Doom and Fallout. Microsoft's properties also include the hit game Minecraft after it bought Swedish game studio Mojang for $2.5 billion in 2014.