Microsoft Settles Activision Blizzard Buyout Lawsuit for $250 Million

The Settlement

Microsoft has agreed to pay $250 million to settle shareholder litigation over its $75.4 billion acquisition of Activision Blizzard, according to Dexerto’s report on May 22, 2026. The case has been moving through Delaware’s Chancery Court, and court approval is still required before the settlement is finalized. The agreement does not include an admission of wrongdoing.

The Core Claim

The lawsuit was brought by AP7, a Swedish pension fund. Its central claim was that Activision Blizzard shareholders were shortchanged because the company sold while its share price was pressured by sexual harassment and workplace misconduct allegations. The fund argued that then-CEO Bobby Kotick and the board accepted too low a price while Kotick was facing scrutiny. A judge previously allowed claims against Kotick and other board members to continue, while rejecting allegations that Microsoft colluded to depress the price.

Reddit Reaction

The r/Games discussion focused on the economics of the deal. One top comment framed the $250 million as roughly 0.33% of the full acquisition price and summarized the argument as Kotick rushing the sale while receiving his own exit. Other users debated whether the acquisition was harmful for competition, whether Call of Duty exclusivity would have changed the outcome, and why regulators allowed the deal to close in 2023.

Why It Matters

This settlement does not unwind Microsoft’s ownership of Activision Blizzard. It is a legal cleanup cost attached to one of the largest acquisitions in gaming history. For players, the practical effects of the deal are already visible through Xbox’s publishing strategy, Game Pass positioning, and the handling of major Activision Blizzard franchises. The settlement adds a dollar figure to the shareholder fight that continued after the transaction closed.