games
May 4, 2022, 20:42
Activision Blizzard found itself in the crosshairs of another group. This time it is a lawsuit by New York City, which has major objections to Bobby Kotik.
Activision Blizzard investors vote on Microsoft’s takeover He went the way of both companiesIn spite of Previous controversy. however The biggest deal in the gaming industry’s history He still has opponents. New Yorkers sued Activision Blizzard And it wants to force the company to disclose documents related to, among other things, its purchase by Microsoft.
New York vs Bobby Kotik
lawsuit (more precisely complaint; via Axios) in Delaware court by New York City Employee Retirement System (literal meaning: New York City Workers’ Retirement System) and teachers’, firefighters’ and police pension funds. All of these groups own shares of Activision Blizzard, and their anger may be focused on the person of the company’s CEO, Bobby Kotik.
City authorities demanded Activision Blizzard documents as of the end of 2021. This was intended to help clarify the extent to which Kotick and other board members knew about employee problems, including incidents of harassment.
Bobby Kotik looking for a way to escape?
As we have read, these scandals had a negative impact on the value of the company and thus hurt investors. Bobby Kotick is responsible for this, and therefore should not have negotiated a deal with Microsoft:
Given Koticek’s personal responsibility for Activision’s disastrous operating conditions, it should be clear to management that he is not fit to negotiate the sale of the company. But it wasn’t.
According to New York City authorities Purchasing by Microsoft is a way for Kotec & Co. to escape responsibility For “gross breach of credit duty”. In addition, the lawsuit alleges that the purchase price of Activision Blizzard shares ($95 per share) in Microsoft’s offering was not paid for goodwill.
Scandal continues to cast a shadow over Activision Blizzard
This isn’t the first time a harassment scandal has overshadowed Microsoft’s takeover of Activision Blizzard. Practically everyone who criticized the deal pointed to the scandal that appeared in the summer of 2021. For the investment group SOC, this was a reason for this exhortFor investors to vote against the acquisition (although, as we know, it didn’t have much of an impact).
However, it is not only the question of Bobby Kotik’s responsibility for poor working conditions that is of concern. A month ago, US Senators They’re called about the scandal, but they also have concerns about the “tech industry consolidation” associated with the merger.
The truth is that Microsoft’s position after the acquisition of Bethesda and (soon) Activision Blizzard appears to be stronger than that of competitors. After the Giant of Redmond do not hide With plans for more acquisitions, it is expected that these are by no means small independent studios.
For more information on Activision Blizzard:
- Bobby Kotick could walk away from Activision Blizzard by millions of dollars
- Activision Blizzard has issues hiring and retaining employees
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