Microsoft Agrees to Pay $250 Million in Activision Deal Lawsuit

Microsoft has agreed to pay $250 million to settle a shareholder lawsuit over its $75.4 billion acquisition of Activision Blizzard, resolving nearly four years of litigation that challenged the deal’s timing and price. The preliminary settlement, filed in Delaware’s Court of Chancery and made public in late May, requires court approval before any funds are distributed.

The lawsuit was brought in 2022 by the Swedish pension fund Sjunde APFonden, known as AP7, which represented shareholders who alleged that former Activision Blizzard CEO Bobby Kotick rushed the sale to Microsoft at an undervalued price. The plaintiffs argued that Kotick and the board agreed to the $95 per share offer to avoid personal fallout from a wave of sexual misconduct allegations that had rocked the company. Kotick stood to receive roughly $400 million in change of control benefits, according to court documents.

A Delaware judge allowed the case to proceed against Kotick and board members in October 2025, though she dismissed claims that Microsoft colluded with Activision’s leadership to drive down the price.

The case took a contentious turn when Kotick countersued AP7, alleging the pension fund had filed...