Since it has been revealed, Microsoft’s $69 billion takeover of Activision Blizzard has been closely watched by Sony, gamers across consoles, authorities, and more. While much of the attention has been centered on whether or not this would create a cartel and how it will affect Call of Duty on PlayStation systems, one business has charged Microsoft and Activision Blizzard King for colluding. To paraphrase Sjunde’s AP- This complaint was just brought by Fonden, a Swedish government-controlled institution responsible for managing annuities for the Swedish people.
While there are many issues with Microsoft’s planned purchase of Activision Blizzard, the 205-page lawsuit submitted on November 10 by Sjunde AP-Fonden and originally covered by Bloomberg Law concentrates on the manner by which the agreement was reached and the circumstances accompanying CEO Bobby Kotick in the wake of the company’s numerous sexual harassment controversies prior to the revelation.
Was A Coverup To Keep Kotick
In a nutshell, Sjunde AP-Fonden claims that Microsoft, as well as the Activision Blizzard acquisition, was “arranged to leverage the struggling videogame giant’s sexual misconduct scandal and safeguard its Leader,” as reported by Bloomberg Law. The litigation also identifies each current and senior member of Activision Blizzard’s board of directors, claiming that the $69 billion price point (the largest purchase in entertainment history) was calculated to facilitate an undervalued bargain between the two and permit Kotick to remain in his role until the climax of the FDA scrutiny, at the very least.
According to the suit, Microsoft and Activision conspired to purchase the large game firm “at a low price” using deceptive means. Both Activision and Microsoft sent comments to Bloomberg Law on this dispute, with the former’s spokesman, Joe Christinat, saying:
“This is a great deal for shareholders. We garnered 98% approval of votes cast. The board went through a thorough process to decide the right move for employees, shareholders, and players.” Microsoft’s response was short, sweet, and to the point: “our proposed acquisition of Activision Blizzard was negotiated lawfully and fairly.”
The outcome of this litigation and the Microsoft-Activision Blizzard deal remain unknown. These are, without a doubt, significant claims that cannot be ignored as the world watches to see what effect this has on businesses apart from Microsoft. According to reports, if this merger goes forward, Microsoft would overtake Blizzard as the top gaming firm in the Americas and will move up to third place globally, after China’s Tencent and Japan’s Sony.