Microsoft's $67.8 Billion Activision Blizzard Acquisition Faces Shareholder Lawsuit
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A Swedish pension fund has filed a lawsuit opposing Microsoft's $67.8 billion acquisition of Activision Blizzard. The lawsuit, filed in Delaware's Court of Chancery in late 2022, follows a period of internal turmoil at Activision, including employee petitions and allegations about workplace culture. CEO Bobby Kotick and his lawyers have submitted a response to the court.
Facts First
- Microsoft is acquiring Activision Blizzard for $67.8 billion
- A Swedish pension fund (AP7) is suing to oppose the deal, filing in Delaware's Court of Chancery in late 2022
- Activision CEO Bobby Kotick has responded to the lawsuit, with his lawyers submitting a court filing in December
- Activision faced internal turmoil in 2021, including allegations of a 'frat boy' culture and a petition from about 1300 employees calling for Kotick's removal
- Kotick claims Microsoft's interest began in 2020, around the time of the TikTok sale during the first Trump administration
What Happened
Microsoft announced its intention to acquire Activision Blizzard for $67.8 billion. In late 2022, Sjunde AP-Fonden (AP7), a Swedish pension fund, filed a lawsuit in Delaware's Court of Chancery opposing the acquisition. Activision Blizzard CEO Bobby Kotick and his lawyers submitted a response to this lawsuit in December 2022.
Why this Matters to You
If you are a gamer, this major industry consolidation could eventually influence the games and services available to you on platforms like Xbox. For investors, the lawsuit represents a potential hurdle to one of the largest tech deals in history, which may affect market dynamics and stock valuations. The case also highlights ongoing corporate governance concerns, as it follows significant internal allegations at Activision Blizzard regarding workplace culture.
What's Next
The lawsuit in Delaware's Court of Chancery will proceed, which could delay or complicate the finalization of the acquisition. The court will need to evaluate the arguments from both the shareholder and the company's leadership. The outcome of this legal challenge may determine the timeline and final terms of the deal.