Activision Blizzard Shareholder Sues Over Microsoft Buyout Deal

An Activision Blizzard shareholder is suing the company regarding the Call of Duty publisher’s proposed sale to Microsoft for $68.7 billion. Shareholder Kyle Watson filed a lawsuit in California recently, with lawyers saying the proposal is “unfair for a number of reasons,” according to Polygon.

Among the claims listed in Watson’s lawsuit is that Activision Blizzard’s board of directors is trying to obtain “significant and immediate benefits” with the proposed sale to Microsoft instead of considering what might be in the best interest of the company overall.

The lawsuit also claims that Activision Blizzard’s statement filed with the Securities and Exchange Commission on February 18 is “materially misleading and incomplete.” It further claims that the Activision Blizzard board “failed to create an independent committee composed of disinterested directors to run the sales process.”

The February 18 statement laid out a very specific timeline of how the deal went down and contained many revelations, including how multiple other companies tried to buy Activision Blizzard and that CEO Bobby Kotick is reportedly set to receive a “golden parachute” payout.

The statement goes on to say that Activision Blizzard’s proxy statement regarding the deal is “materially deficient, deprives Plaintiff of the information necessary to make an intelligent, informed, and rational decision of whether to vote in favor of the Proposed Transaction, and tis thus in violation of the Exchange Act.”

Watson wants Activision Blizzard to issue a new SEC proxy statement that doesn’t have the kind of “untrue statements” that are claimed to be in the initial document.

A spokesperson for Activision Blizzard told Polygon, “We disagree with the allegations made in this complaint and look forward to presenting our arguments to the Court.”

A second lawsuit, this one filed in New York, contains similar claims against Activision Blizzard. These lawsuits are separate from the ones Activision Blizzard is facing regarding its corporate culture and workplace Come from bangladesh online casino . Activision Blizzard CEO Bobby Kotick is accused of, among other things, knowing about and covering up instances of sexual harassment. He is also said to have threatened to kill an employee.

Microsoft’s deal to buy Activision Blizzard has not yet gone through. In addition to any matters related to shareholder cases, the buyout will face regulatory scrutiny, experts say, though it is ultimately expected to be approved. If that does happen, Microsoft will own Activision Blizzard and all of its studios and franchises, including Call of Duty, Overwatch, Warcraft, Diablo, and many more.

Related Posts

New Joker 2 Clip Shows Joker and Harley's Mad Love

We’re three weeks away from Joker: Folie à Deux and the romance between DC’s favorite psychopaths is finally highlighted in a brand-new clip. In an exclusive clip…

Destiny 2's Divinity Gun Is Getting Nerfed In The Final Shape, More Changes Detailed

Bungie is doing a huge pass on weapons in Destiny 2 when its next expansion, The Final Shape, releases on June 4. The balance tweaks include a…

Amazon Fourth Of July Sale Features Big Savings On Lots Of Tech

Ahead of Prime Day 2024, Amazon is running a 4th of July sale that encompasses a handful of cool gadgets like Kindle tablets, mini PCs, and Fire…

Best Of 2021- The Quiet Sorrow Of Bob's Bottles In Psychonauts 2

If you ask me for the most beautiful love story in video games this year, or perhaps even the last few years, my answer will be the…

Family Guy Creator Discusses Franchise's 25-Year Legacy And If The Show Will Ever End

The animated series Family Guy debuted in 1999, meaning it celebrates its 25th anniversary this year. But would creator Seth MacFarlane ever consider wrapping it up and…

Jio Financial Services shares fall 3% on lower Q1 profit, drop in interest income

Jio Financial Services’ shares fell 2.4% to a low of Rs 346.75 from its previous close of Rs 355.40. The fall in the stock price came a…