Microsoft is paying a substantial settlement to resolve legal disputes with shareholders that arose during its acquisition of Activision Blizzard.

In a filing submitted to a Delaware court on May 22, Microsoft agreed to pay $250 million to settle a class-action lawsuit brought by shareholders regarding the acquisition of Activision Blizzard (hereinafter 'Activision').

This marks the end of a three-year legal battle stemming from the gaming industry's largest-ever acquisition, valued at $75.4 billion (approximately ₩102.54 trillion).

The lawsuit was initiated by shareholders, including the Swedish national pension fund AP7, against Microsoft and former Activision executives. The shareholders alleged that former executives, including former CEO Bobby Kotick, caused significant financial harm by selling the company at an undervalued price of $95 per share.

In particular, they alleged that after the stock price plummeted due to internal sexual harassment scandals, Kotick rushed the sale to preserve his position and secure a severance package worth approximately $400 million (approximately ₩544 billion) rather than acting in the company's best interest.

According to court documents, 40% of the $250 million settlement will be paid directly by Microsoft, while the remaining 60% will be covered by insurance policies held by former Activision executives. Participating shareholders are expected to receive approximately 30 cents per share. Both sides opted for a settlement to avoid the mounting costs and operational disruptions of a prolonged legal battle, with the agreement stipulating that neither Microsoft nor the executives admit any wrongdoing.

In announcing the settlement, Microsoft distanced itself from controversies surrounding the company's internal culture, stating, "No court or independent investigative body has substantiated allegations that a culture of sexual harassment was rampant at Activision or that senior management ignored such issues." Former CEO Kotick had previously countersued, claiming the lawsuit was a malicious attack instigated by competitors, but this settlement brings all legal disputes between the parties to an end.

The settlement is subject to final court approval and will be distributed to Activision shareholders who were affected at the time of the sale. Legal experts noted that this case serves as an important reminder that when selling a company, the interests of shareholders must take precedence over the personal interests of the CEO.