The legal challenges surrounding Xbox’s acquisition of Activision Blizzard have come to a close.
After nearly four and a half years since the acquisition was first announced, Microsoft has successfully resolved the final legal hurdle regarding its purchase of Activision Blizzard.
Reports indicate that Microsoft has reached a $250 million settlement with AP7, a Swedish pension fund that filed a class action lawsuit against the company in 2022. Had AP7 prevailed, Microsoft would have been required to pay an additional 30 cents per share to Activision stockholders from January 2022 to October 2023. Ultimately, AP7 opted for a settlement, noting in official documents that “Microsoft is entering into this Stipulation solely to avoid the burden, expense, and distraction of continued litigation.”
This settlement signifies the conclusion of a challenging chapter for Xbox that began with the acquisition announcement in 2022. The deal faced intense global legal scrutiny, leading Microsoft to engage in a court battle with the FTC over the merger. To secure approval, Microsoft had to make several concessions, particularly concerning the availability of Activision Blizzard titles on non-Microsoft platforms and cloud-gaming services.
Microsoft completed its acquisition of Activision Blizzard in October 2023, but challenges persisted. Over the years, Xbox has experienced multiple rounds of layoffs, affecting many developers at Activision Blizzard studios. The financial pressures following the acquisition also prompted some contentious decisions, including the abandonment of platform exclusivity and a significant price hike for Xbox Game Pass.
The repercussions of the Activision Blizzard deal reached a peak earlier this year when Phil Spencer, CEO of Microsoft Gaming, stepped down, and Asha Sharma took the reins. Since her appointment, Sharma has made some bold moves, including reducing Game Pass prices while removing day-one access to future Call of Duty titles.
This settlement marks a pivotal moment for Xbox, signaling a potential shift as the company looks to move past the challenges stemming from its acquisition of Activision Blizzard.