Microsoft reaches settlement in lawsuit over Activision takeover
Date
10/16/2024 5:50:32 AM
(MENAFN) Microsoft Corp. has reached a settlement in a lawsuit filed by a group of gamers attempting to block its Acquisition of video game publisher Activision Blizzard for USD69 billion. While the specific terms of the settlement have not been disclosed, both parties agreed to dismiss the lawsuit and to cover their own legal costs and fees, as indicated in a court filing dated Monday.
The lawsuit was initiated in 2022 in a U.S. federal court in San Francisco, representing 10 individual gamers who are avid fans of Activision Blizzard’s popular franchises, including Call of Duty, World of Warcraft, Overwatch, and Diablo. The plaintiffs argued that the merger could harm competition in the gaming market and lead to reduced choices for consumers.
The acquisition process took nearly 22 months to finalize, reflecting significant scrutiny from rivals and government regulators who expressed concerns about Microsoft's potential to use its growing library of games to stifle competition. This apprehension is set against a backdrop of broader consolidation within the gaming industry, with fears among independent developers that they could be sidelined as major studios focus their resources on established blockbuster franchises that have historically generated significant revenue.
As part of the acquisition, Microsoft has committed to keeping Activision Blizzard's games available on multiple platforms, a point that has been critical in addressing some regulatory concerns. Despite the challenges posed by the lawsuit and regulatory hurdles, the deal ultimately reflects Microsoft’s strategy to bolster its gaming division and expand its footprint in the competitive gaming landscape.
In a statement regarding the lawsuit's resolution, Microsoft confirmed that the parties have resolved the litigation. The settlement marks a significant step toward concluding one of the most high-profile acquisitions in the gaming industry, allowing Microsoft to move forward with its plans for Activision Blizzard amid ongoing changes in the market.
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