Everyone, including Sony, fans of all platforms, regulators, and more, has been eyeingMicrosoft’s $69 billion acquisition of Activision Blizzard King since it was announced, but while many have largely focused on whether it would form a monopoly or how it would impactCall of Dutyon PlayStation consoles, one company has sued the two involved in the purchase for collusion. Sjunde AP-Fonden, a Swedish government-owned agency that manages pensions for the Swedish people, recently filed this lawsuit.
No doubt, Microsoft’s pending acquisition of Activision Blizzard faces a ton of criticisms, but this 205-page complaint, made public on November 10, filed by Sjunde AP-Fonden, and first reported by Bloomberg Law, focuses more so on how the deal came about and the terms surrounding CEO Bobby Kotick followingActivision Blizzard’s many sexual misconduct scandalsahead of the announcement.
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In short, Sjunde AP-Fonden alleges that theMicrosoftand Activision Blizzard merger was “rigged to exploit the beleaguered gaming giant’s sexual harassment crisis and protect its CEO,” per Bloomberg law. It further names every current and ex-member of Activision Blizzard’s board of directors, stating that the $69 billion price point (which is the biggest acquisition in gaming history) was engineered to allow for an underpriced deal between the two and allow Kotick to keep his position until the end of the regulatory review, at least, according to the lawsuit.
It claims Microsoft colluded with Activision to acquire the major gaming company “at a bargain price” and alleges the process to have been a sham. A spokesperson for Activision and Microsoft both addressed this lawsuit in statements to Bloomberg Law, with Activision spokesman Joe Christinat stating: “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.”
It’s uncertain which way theMicrosoft-Activision Blizzard mergerwill go down, as well as what comes of this lawsuit. These are obviously serious allegations and should not simply be swept under the rug, while everyone eyes what this means for other companies outside Microsoft. For context, it has been reported that, if this deal goes through, Microsoft would become the largest gaming company based in the Americas, while it would also become the third-largest gaming company in the world behindChinese company Tencent and Japanese conglomerate Sony.
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