Microsoft Reaches $250M Settlement in Activision Takeover Lawsuit

(AsiaGameHub) –   Microsoft has reached a $250 million settlement in a shareholder lawsuit linked to its Activision Blizzard acquisition. The legal dispute focused on allegations that the maker of Call of Duty agreed to the $95-per-share offer too quickly and at an undervalued price.

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Good to Know

• Swedish pension fund Sjunde AP-Fonden spearheaded the shareholder lawsuit.
• The suit alleged former Activision CEO Bobby Kotick rushed the sale to advance his own personal gain.
• This settlement will also resolve the counterclaims submitted by Microsoft and Kotick.

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Activision Buyout Case Concludes With $250 Million Settlement

The lengthy legal battle surrounding Microsoft’s acquisition of Activision Blizzard is now poised to wrap up. Reuters has reported that shareholders finalized a $250 million settlement in Delaware state court, closing claims tied to one of the largest gaming deals ever completed.

Microsoft paid $69 billion to acquire Activision Blizzard when the deal closed, bringing popular titles including Call of Duty, World of Warcraft, Diablo, and King’s mobile games under the Xbox owner’s umbrella. The shareholder case argued that Activision should have negotiated for a higher purchase price.

Sjunde AP-Fonden, also known as AP7, claimed Bobby Kotick and other former Activision executives breached their fiduciary duties to investors by agreeing to the $95-per-share takeover price. The pension fund alleged Kotick pushed forward with the sale as Activision grappled with fallout from sexual misconduct reports and stood to secure a large payout from the deal.

Kotick denied the allegations and filed his own counterclaims. He argued that the AP7 lawsuit was partly “aimed to help pave the way for [Swedish game company] Embracer to increase its foothold in the California market at the expense of Activision.”

Embracer rejected the claim at the time, saying it was “humbled” by the allegation but did not need assistance from a Swedish pension fund to compete with Activision.

The settlement also dismisses those counterclaims. For Microsoft, the $250 million payment closes another loose end from a takeover that faced heavy regulatory resistance before its completion.

While the sum appears sizable under standard circumstances, it only makes up a small fraction of Activision’s total purchase price. Still, the case kept focus on the internal sale process, Kotick’s role, and whether shareholders received full value before Microsoft Gaming absorbed one of the industry’s most valuable publishers.

FAQ

What Is the Value of the Microsoft-Activision Settlement?

The settlement totals $250 million.

Which Party Initiated the Activision Buyout Lawsuit?

Swedish pension fund Sjunde AP-Fonden, also known as AP7, led the shareholder case.

What Were the Core Allegations of the Lawsuit?

The lawsuit claimed Activision accepted the Microsoft offer too quickly and at an undervalued price.

What Was the Total Value of the Microsoft-Activision Deal?

Microsoft agreed to buy Activision Blizzard in a deal widely reported to be valued at roughly $69 billion.

What Is the Resolution for the Counterclaims?

The settlement also resolves counterclaims filed by Microsoft and Bobby Kotick.