Xbox finally settles the last legal challenge to its Activation Blizzard acquisition

Nearly four-and-a-half years after the acquisition was first announced, Microsoft has finally settled the last remaining legal challenge to its acquisition of Activision Blizzard.

Game File reported on May 22 that Microsoft had reached a $250 million settlement with AP7, a Swedish pension fund also known as Sjunde AP-Fonden, which had filed a class action lawsuit against Microsoft in 2022. If AP7 had won its lawsuit, Microsoft would’ve had to pay an additional 30 cents per share to those who owned Activision stock between Jan. 2022 and Oct. 2023. Ultimately, AP7 settled, although it stated in official documentation that “Microsoft is entering into this Stipulation solely to avoid the burden, expense, and distraction of continued litigation.”

This settlement marks the end of a very tumultuous period for Xbox that began when the acquisition was announced in 2022. Xbox’s acquisition of Activision Blizzard immediately came under worldwide legal scrutiny, and Microsoft has already battled the FTC in court over the merger. Several concessions, primarily related to the availability of Activision Blizzard titles on platforms Microsoft doesn’t own and cloud-gaming services, had to be made for the acquisition to be approved.

Microsoft fully acquired Activision Blizzard in Oct. 2023, but Xbox’s troubles did not end there. Over the past several years, Xbox has had multiple rounds of layoffs, many of which have impacted developers working at Activision Blizzard studios. The increased financial burden placed on Xbox post-acquisition also led it to make some controversial decisions, such as abandoning platform exclusivity and drastically raising the price of Xbox Game Pass.

The fallout of the Activision Blizzard deal came to a head earlier this year, when Microsoft Gaming CEO Phil Spencer stepped down, and Asha Sharma took over. Since then, Sharma has made some bold decisions. These have included dropping Game Pass’ price by taking away access to future Call of Duty games from day one.

This settlement feels like the end of an era for Xbox, as it finally seems ready to move on from the problems caused by its acquisition of Activision Blizzard.