That investment was (in part, along with a cash settlement) the resultion of a dispute over Microsoft using Quicktime code in their Video for Windows product.
Pretty sure Microsoft would have no problem holding their own in court - they had a good track record at that point. Seems like they just leveraged their and Apple's positions to bundle it into the deal.
If it were a "settlement", it would have happened in the court room. Apple surrendered the case just to stay alive.
That investment was (in part, along with a cash settlement) the resultion of a dispute over Microsoft using Quicktime code in their Video for Windows product.