Microsoft agreed on May 22, 2026, to pay $250 million to settle a lawsuit filed by Swedish pension fund AP7 challenging the valuation of Activision Blizzard shares in the $69 billion acquisition deal completed in October 2023 [1, 2]. AP7 had claimed that Microsoft undervalued Activision Blizzard shares when the companies agreed on the acquisition terms in 2022 [1, 2].

Microsoft acquired Activision Blizzard in 2022 for $69 billion and finalized the acquisition in October 2023 after facing regulatory scrutiny and legal challenges worldwide, including battles with the Federal Trade Commission in the US [1]. The deal carried conditions tied to game availability and cloud gaming concessions.

The settlement document cited by sources states Microsoft is "entering into this Stipulation solely to avoid the burden, expense, and distraction of continued litigation" [1]. AP7’s lawsuit represented one of several post-acquisition challenges amid ongoing skepticism from some investors.

Activision Blizzard previously paid $54 million in 2023 to resolve a California lawsuit alleging discrimination against female employees [2]. The company and Microsoft have denied systemic wrongdoing. Settlement statements noted that "no court or any independent investigation has substantiated any allegations that: there has been systemic or widespread sexual harassment at Activision Blizzard [or] that Activision Blizzard senior executives ignored, condoned, or tolerated a culture of systemic harassment, retaliation, or discrimination" [2].

Microsoft Gaming experienced leadership changes earlier this year with CEO Phil Spencer stepping down and Asha Sharma taking over. Sharma’s tenure has involved adjustments to Xbox Game Pass pricing and updates on Call of Duty’s platform availability [1].

The $250 million settlement resolves AP7’s claims over the acquisition valuation and allows Microsoft to avoid further legal costs and business interruptions [1]. No court ruling was issued on the merits after the parties agreed to the settlement.

Microsoft and AP7 finalized the settlement in late May 2026. Further actions related to the acquisition have not been disclosed.