Activision Blizzard Shareholders Secure $250 Million Settlement
Activision Blizzard shareholders and Microsoft have reached a $250 million settlement over a merger dispute. The disagreement centered around allegations that company executives and Microsoft shortchanged shareholders during a $75.4 billion acquisition. The settlement will resolve counterclaims and must be approved by the Delaware Court of Chancery.
In a landmark $250 million settlement, Activision Blizzard's shareholders have resolved a legal battle with the company's former executives and Microsoft. The dispute involved claims that shareholders were shortchanged in Microsoft's $75.4 billion acquisition of the game maker in 2023.
Led by Swedish pension fund Sjunde AP-Fonden, shareholders accused former executives, including CEO Bobby Kotick, of failing to uphold their fiduciary duties by hastily agreeing to a $95-per-share takeover. Kotick allegedly rushed the deal to retain his position and secure $400 million in benefits.
The settlement, which awaits approval from Delaware Court of Chancery's Chief Judge Kathaleen McCormick, will be funded 40% by Microsoft with the remainder covered by liability insurance. The payment equates to 30 cents per share and aims to end ongoing litigation distractions.
(With inputs from agencies.)
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