HomeTech GiantsMicrosoftActivision Blizzard and Microsoft are being accused of having manipulated the merger...

Activision Blizzard and Microsoft are being accused of having manipulated the merger between the companies

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The merger between Activision Blizzard and Microsoft is under close scrutiny by various regulatory bodies around the world, most notably the European Commission and the FTC, a US body.

This week, the deal hit yet another hurdle, as Sweden’s government pension fund filed a lawsuit against the companies, alleging they took advantage of scandals involving Activision Blizzard, in addition to protecting CEO Bobby Kotick.

The 200-page-plus lawsuit filed against Activision Blizzard accuses Kotick and former members of the company’s management board of crafting a deal below the company’s actual price, just to allow the CEO to remain in the lead until the sale, which will allow you to receive a millionaire prize.

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Microsoft is accused of using the scandal surrounding Activision to carry out the “sale” purchase at a time of weakness. According to Bloomberg, “Microsoft exploited the harassment scandal and used its commercial influence over Activision precisely to offer Kotick a way to save his own skin.”

He conspired with Kotick and the board of directors to help him escape the personal and professional consequences of the scandal.

A representative of Activision defended the deal and claims that it is good value for shareholders, recalling that they achieved a 98% approval. In addition, he claims that it was a decision thought out for the good of all employees.

On the part of Microsoft, a representative says that the deal was carried out in a “fair and in accordance with the law”.

The legal process accuses the “hastily negotiated transaction” of serving only to protect Kotick and other managers from the consequences, not forgetting that he will receive more than 400 million euros as a prize.

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The complaint goes on to say that Microsoft was quick to capitalize on the momentum and help take the spotlight off the scandal. In addition, he accuses managers of hiding important information before approval.

It is worth mentioning that this is not the first time that the purchase has been contested for the same reasons as the process above, but as always, we must wait for official decisions to find out how this story will end.

Do you think the merger between Microsoft and Activision Blizzard will be stopped?

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