Microsoft to Pay $250 Million to Settle Lawsuit Over Activision Blizzard Acquisition

Long after Microsoft finally closed its massive Activision Blizzard takeover, the legal drama surrounding the deal apparently still was not over. Now, a report by Game File suggests that Microsoft has agreed to pay $250 million to settle a shareholder lawsuit related to the blockbuster $69 billion acquisition of Activision Blizzard.

The lawsuit claimed Bobby Kotick “rushed” the Activision sale

The lawsuit originally came from Swedish pension fund AP7 back in 2022, and the accusations surrounding it were honestly pretty serious. Per the lawsuit, former Activision Blizzard CEO Bobby Kotick allegedly “rushed” the Microsoft acquisition process, which supposedly prevented shareholders from getting a potentially higher price than Microsoft’s agreed $95-per-share deal.

That being said, both Microsoft and AP7 denied wrongdoing as part of the settlement. Microsoft reportedly agreed to settle mainly to avoid the “distraction of litigation,” while AP7 described the final payment as “fair.”

Interestingly, Microsoft itself will only directly cover around 40% of the settlement. The remaining 60% reportedly comes from directors’ and officers’ liability insurance. The payment overall equals roughly 30 cents per Activision Blizzard share. Notably, that’s according to a preliminary settlement filed last week in Delaware’s Court of Chancery. which, however, is pending for final court approval.

The settlement also revisits Activision Blizzard misconduct claims

One of the more notable parts of the filing revolves around earlier workplace misconduct allegations related to Activision Blizzard. In the preliminary settlement, Microsoft stated:

“Microsoft does not substantiate any allegations that there has been systemic or widespread workplace misconduct at Activision; that Activision senior executives ignored, condoned, or tolerated a culture of systemic harassment, retaliation, or discrimination.”

The filing also references statements from California’s Civil Rights Department, which reportedly acknowledged that previous claims had not been “substantiated” through independent investigation or court findings. Meanwhile, Kotick previously argued the AP7 lawsuit itself may have been indirectly connected to Embracer Group due to AP7 executive Emma Ihre previously working there.

Kotick’s legal team described the lawsuit as a “collateral attack on Activision.” Embracer flatly denied the accusations, saying there was “no coordination or collaboration” with AP7 regarding the case. The Microsoft-Activision deal itself officially closed in October 2023 after surviving multiple regulatory battles, including scrutiny from the UK’s Competition and Markets Authority.