Activision shareholders have reached a US$250 million settlement with Microsoft over the technology giant's acquisition of the video game publisher, according to court documents filed on Wednesday. The proposed settlement, which requires approval from a Delaware judge, would resolve a class-action lawsuit filed by shareholders who claimed that Activision's board breached its fiduciary duties during the $68.7 billion deal.
Details of the Settlement
The settlement, disclosed in a filing with the Delaware Court of Chancery, covers shareholders who held Activision stock between January 18, 2022, and April 28, 2023. If approved, it would release all claims related to the merger. The plaintiffs alleged that Activision's board failed to maximize shareholder value and provided misleading information about the deal's regulatory hurdles.
Microsoft, which completed the acquisition in October 2023, did not admit any wrongdoing as part of the settlement. The company stated that it agreed to the settlement to avoid the costs and distractions of continued litigation.
Reaction from Shareholders
Shareholder attorneys called the settlement a "significant recovery" for investors. The lead plaintiff, a pension fund, said in a statement that the resolution demonstrates the importance of holding corporate boards accountable. Activision's board also issued a statement noting that the settlement avoids prolonged legal battles and allows the company to focus on integration with Microsoft.
The case had been closely watched as a test of shareholder rights in mega-mergers. Legal experts noted that the settlement amount, while substantial, represents a fraction of the deal's total value. The court will hold a hearing to consider final approval on August 15, 2026.
