Activision shareholders reach $250 million settlement over Microsoft buyout

Activision Blizzard shareholders have finalized a $250 million settlement over allegations that the company’s former executives and Microsoft shortchanged investors during the $75.4 billion acquisition in 2023. The lawsuit, filed in Delaware state court, was led by Swedish pension fund Sjunde AP-Fonden, which accused former CEO Bobby Kotick and other executives of breaching fiduciary duties by agreeing to a $95 per share takeover price. The shareholders argued that Kotick pushed for the merger to secure his job and $400 million in change-of-control benefits. They claimed the rushed deal did not maximize shareholder value. Microsoft and Kotick had filed counterclaims against Sjunde AP-Fonden, which will also be resolved under the settlement agreement. The settlement marks the end of a legal dispute that questioned whether the merger terms were fair to Activision Blizzard’s investors. The case centered on whether executives prioritized personal gains over shareholder interests. No further details on the distribution of the $250 million were provided in the court filing. The acquisition, announced in January 2023, was one of the largest in gaming history, combining Microsoft’s gaming division with Activision Blizzard’s franchises, including *Call of Duty*. The settlement does not address broader concerns about the merger’s impact on competition or industry consolidation. Legal experts noted that such settlements often avoid lengthy trials, allowing both sides to move forward. The case had drawn attention to corporate governance in high-stakes acquisitions. The Delaware court filing confirmed the agreement was reached late Thursday, concluding the litigation.