The legal fallout of Xbox's acquisition of Activision Blizzard is finally over
Polygon.com • • business
Key Points:
- Microsoft has settled the last legal challenge to its acquisition of Activision Blizzard by agreeing to pay $250 million to AP7, a Swedish pension fund that had filed a class action lawsuit in 2022.
- The lawsuit would have required Microsoft to pay an additional 30 cents per share to Activision stockholders if AP7 had won, but Microsoft settled to avoid ongoing litigation costs.
- The acquisition, announced in 2022 and completed in October 2023, faced extensive legal scrutiny worldwide, including battles with the FTC and required concessions regarding game availability and cloud gaming.
- Post-acquisition challenges included multiple layoffs at Activision Blizzard studios, increased financial pressures on Xbox, and controversial decisions such as ending platform exclusivity and raising Xbox Game Pass prices.
- Following leadership changes, with Asha Sharma replacing Phil Spencer as Microsoft Gaming CEO, Microsoft has taken steps to restructure Game Pass pricing and content access, signaling a new phase for Xbox after settling acquisition-related issues.