Microsoft to Inherit Activision’s Legal Woes in Gaming Megadeal

Microsoft Corp.’s $69 billion deal for Activision Blizzard Inc. will bring a host of legal and public relations headaches as the tech giant inherits the state and federal lawsuits, shareholder litigation, and intense public scrutiny over allegations of sexual harassment and discrimination that hit the video game publisher.

Lawyers and industry watchers said Microsoft faces tough decisions ahead on how best to resolve the legal issues involving Activision and the broader questions about the workplace culture in gaming and the tech industry.

Some of the deal’s finer points are still unclear, but the move likely means Microsoft will assume ...