Microsoft settled a lawsuit filed by Swedish pension fund Sjunde AP-Fonden (AP7) over its acquisition of Activision Blizzard, ending legal disputes that lasted from 2022 through 2026 [1, 2]. The deal valued the acquisition near $69 billion when it closed in 2022 [1, 2].
AP7 had opposed the purchase in late 2022, alleging the deal was rushed to avoid fallout from sexual misconduct allegations against Activision Blizzard and to secure a lucrative payout for former CEO Bobby Kotick [1, 2]. Activision Blizzard had faced widespread criticism and multiple lawsuits in 2021 over a culture of sexual harassment and gender discrimination, with Kotick's leadership specifically under scrutiny [1].
Kotick disputed AP7's motivations, filing a countersuit that claimed the pension fund aimed to help competitor Embracer Group increase its market foothold in California at Activision’s expense. Kotick said, "This Delaware lawsuit was apparently aimed to help pave the way for Embracer to increase its foothold in the California market at the expense of Activision, making it more difficult for Activision to recruit talent and expand through M&A activity of the sort that Activision relied on to grow historically" [1].
Embracer Group denied involvement, stating, "We did not and do not need any help from a Swedish pension fund in competing with Activision" [1].
Ultimately, Microsoft agreed to pay $250 million to settle with AP7, ending both the initial lawsuit and countersuits [2]. The sum represents less than 0.5% of the $69 billion acquisition price and was viewed as relatively small compared to the scale of the transaction [2].
The lawsuit and countersuits spanned several years, with AP7 bringing legal challenges after the 2022 deal closed, and the parties reaching agreement in 2026 [1, 2]. The settlement resolves the final legal obstacles related to the acquisition.
With the settlement concluded, Microsoft and Activision Blizzard can now focus fully on integrating their businesses without the cloud of litigation from AP7.
