Activision Blizzard Shareholder Sues Over Microsoft Buyout Deal

Activision shareholder Blizzard is suing the company over the alleged sale of Call of Duty publisher Microsoft for $68.7 billion. Shareholder Kyle Watson recently filed a lawsuit in California, with lawyers saying the proposal is “unfair for a number of reasons” by Polygon. Among the claims listed in Watson’s lawsuit is that Activision Blizzard’s board of directors is seeking “significant and immediate benefit” from the proposed sale to Microsoft, rather than considering what may be in the interests of the company as a whole.

The suit also alleges that Activision Blizzard’s filing with the Securities and Exchange Commission on February 18 was “materially misleading and incomplete.” It further states that Activision Blizzard’s board “failed to establish an independent committee of disinterested directors to manage the sales process.”

The Feb 18 statement laid out a very specific timeline for how the deal went and contained many revelations, including how several other companies were trying to buy Activision Blizzard and that CEO Bobby Kotick was reportedly due to receive a payout “golden parachute”.

The statement goes on to say that Activision Blizzard’s proxy statement regarding the deal is “materially deficient, depriving Plaintiff of the information necessary to make a reasonable, informed and rational decision about whether to vote for the Proposed Deal and thus a violation of the Exchange Act.”

Microsoft is in the process of acquiring Activision Blizzard

Watson wants Activision Blizzard to release a new official SEC statement that does not contain the “false statements” the original document claims to contain. This was announced by the representative of Activision Blizzard Polygon. “We disagree with the allegations made in this complaint and look forward to presenting our arguments to the court.”

The second lawsuit this one is filed in new york contains similar claims against Activision Blizzard. These lawsuits are different from those that Activision Blizzard is facing regarding corporate culture and the workplace. Activision Blizzard CEO Bobby Kotick is accused, among other things, of knowing about and covering up incidents of sexual harassment. It is also reported that he threatened to kill an employee.

Microsoft’s deal to buy Activision Blizzard has yet to go through. In addition to any issues related to shareholder affairs, the buyout will be subject to regulatory scrutiny, experts say, although it is expected to eventually be approved. If that happens, Microsoft will own Activision Blizzard and all of its studios and franchises, including Call of Duty, Overwatch, Warcraft, Diablo, and more.

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