Activision demanded by New York City, Targets Bobby Kotick and Microsoft Deal
Activision is being sued by the New York City employee retirement system, a group that alleges that Bobby Kotick was not in a position to make a deal with Microsoft to sell the company after the reports of a “broken workplace ” last year. Earlier this year, Microsoft announced its intention to buy Activision Blizzard for just 70,000 million dollars, which makes it the greatest acquisition of games in history. The agreement received many criticism from politicians, investors and even consumers, but since last week, it has been on its way to approval. Activision shareholders gave their approval to the agreement with Microsoft and the legendary investor Warren Buffett also declared that he believed that regulators would approve the agreement. Said all this, there has been a new obstacle to treatment.
After a lawsuit and the reports of a poorly managed workplace in Activision last year, the New York City Employee Retirement System filed a lawsuit claiming that the Activision CEO, Bobby Kotick, hastened to sign the according to Microsoft to escape responsibility for misconduct. The group has activation actions and believes that the company’s shares have devalued it. New York City is requesting documents based on the Microsoft Agreement, internal company misconduct management and more. The demand alleges that Kotick “was not suitable” to negotiate an agreement with Microsoft due to all accusations and this was seen as a way of “escaping responsibility.” The group also states that Microsoft undervalued the company with its $ 95 per share, since the company’s shares quoted around that price before accusations and other demands.
As is, it is not known what will happen. Activision is already dealing with a large number of legal problems before closing the agreement with Microsoft. If everything is approved, the agreement is expected to close in the summer of 2023. Meanwhile, Activision is operating as usual and recently announced its next game, call of Duty: Modern Warfare II that this fall will be launched.