Microsoft settles for $250 million in lawsuit against Activision Blizzard

Microsoft has recently agreed to pay a hefty $250 million settlement to end a lawsuit filed by Activision Blizzard shareholders. The case, which began in 2022, had taken a complex and chaotic path, drawing renewed attention to the misconduct allegations that surrounded Activision Blizzard in the public eye ahead of Microsoft’s acquisition.

Background of the lawsuit

The lawsuit was brought by the Swedish pension fund Sjunde AP-Fonden (AP7), which argued that Activision Blizzard moved too quickly in selling the company to Microsoft. Shareholders believed they were denied the chance to secure a higher sale price than Microsoft’s $95-per-share offer. That offer was part of a much larger acquisition with major implications for the market and the parties involved.

The case also targeted former CEO Bobby Kotick, who was accused of rushing the sale to protect his own position amid growing pressure over workplace misconduct allegations. The case has not only kept the acquisition in the spotlight, but also the controversies surrounding the working environment at Activision Blizzard.

Details of the settlement

The settlement, which has received preliminary approval in Delaware’s Court of Chancery, is expected to provide payouts of around 30 cents per share to former shareholders. This includes anyone who owned Activision Blizzard stock between the acquisition announcement in January 2022 and the deal’s completion in October 2023. Given the size of the settlement, which will no doubt help Microsoft avoid future legal complications, it is notable that none of the parties involved has admitted any wrongdoing over what happened.

Financial implications

Microsoft’s total purchase price for Activision Blizzard is now estimated at $75.4 billion, making it one of the biggest acquisitions in the games industry and the wider tech sector. In that context, the $250 million settlement represents an increase of 0.33% on the deal’s total cost. In an early 2026 court filing, Microsoft explained that it entered the settlement to avoid the burden and expense of further litigation.

After years of legal battles and scrutiny, this lawsuit now appears to be coming to an end. If approved by the judge, the proposed settlement will mark the case’s conclusion and may shift attention away from future lawsuits involving Activision Blizzard.

The company has explicitly denied any systematic or widespread workplace misconduct. That repeats earlier arguments made by Kotick and his legal team since the lawsuit began. In its early stages, AP7’s case was even based on allegations that were later deemed unfounded.

Ultimately, the road to this settlement has not only protected shareholder interests, but also tested the reputations of Activision Blizzard and Microsoft.