Activision Blizzard shareholders reached a $250 million settlement tied to Microsoft’s 2023 takeover of the video game company. The proposed agreement follows claims that investors received less than they should have when Microsoft bought the maker of Call of Duty for $75.4 billion. The case also questioned how former Activision Blizzard leaders handled the sale process.
The settlement appeared in a late Thursday filing in Delaware state court. It would end claims brought by former Activision Blizzard shareholders over the $95-per-share takeover price agreed during the Microsoft deal. The merger closed in 2023 after long reviews by competition regulators in several markets.
The case focused on whether former Activision Blizzard leaders acted in the best interests of investors during sale talks. Shareholders, led by Swedish pension fund Sjunde AP-Fonden, claimed the company accepted a price that did not reflect its full value. They also included Microsoft in the dispute over the transaction.
Microsoft agreed to pay $250 million under the proposed settlement. The agreement still needs court approval before it becomes final. If approved, the payment would resolve the shareholder claims and end a long legal fight tied to one of the largest gaming acquisitions ever completed.
The plaintiffs accused former Activision Blizzard executives, including former CEO Bobby Kotick, of breaching fiduciary duties. They argued that company leaders moved ahead with the transaction despite concerns over the price. The lawsuit also challenged the role of board decisions during negotiations with Microsoft.
Shareholders claimed Kotick rushed into the merger so he could keep his job and receive about $400 million in change-of-control benefits. Those claims remained disputed during the case. The proposed settlement does not present those claims as proven findings, and it would close the dispute without a trial on those points.
Microsoft and Kotick also brought counterclaims against Sjunde AP-Fonden. The settlement would resolve those counterclaims as part of the same agreement. Therefore, both sides would avoid more litigation tied to the buyout and the claims made during the dispute.
The proposed agreement would close more than four years of litigation. The case moved through Delaware state court as shareholders pressed claims over the merger price and the conduct of former Activision Blizzard executives. However, the settlement would stop further proceedings if the court approves it.
The Activision Blizzard purchase gave Microsoft control of major gaming franchises, including Call of Duty. The acquisition expanded Microsoft’s gaming business through console, mobile, and online titles. Still, the shareholder case focused on the sale process and whether former investors received a fair price.
The settlement offers a cash resolution without any court finding that Microsoft, Kotick, or former Activision Blizzard executives broke the law. The parties have not formally admitted any wrongdoing. For shareholders, the agreement creates a direct recovery linked to the merger dispute. For Microsoft and the former executives, it would remove a legal case tied to the completed buyout.
The court will review the proposed settlement before final approval. Until then, the agreement remains subject to legal steps in Delaware. The filing marks the latest stage in a case that followed Microsoft’s purchase of Activision Blizzard and the investor claims around the deal.
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