Bobby Kotick Alleges Lawsuit Against Microsoft-Activision Deal Aims to Boost Embracer Sales
In a recent legal battle, Bobby Kotick, the former CEO of Activision Blizzard, contends that a lawsuit initiated by a Swedish pension fund aims to benefit Embracer at Activision’s expense. The lawsuit, filed by Sjunde AP-Fonden AP7 in 2022, opposes Microsoft’s $69 billion acquisition of Activision Blizzard. It claims that Kotick hurried the sale to evade repercussions from various sexual misconduct scandals.
Bobby Kotick’s Claims Against AP7
Kotick denies the allegations outlined in the lawsuit and has submitted a counterclaim against Embracer. He describes AP7’s action as a “collateral attack on Activision,” suggesting that it is part of Embracer’s strategy to weaken Activision’s competitiveness.
Details of the Lawsuit
- Filed: 2022
- Claimant: Sjunde AP-Fonden AP7
- Defendant: Bobby Kotick (former Activision CEO) and Microsoft
- Acquisition Value: $69 billion
AP7 asserts that Activision’s stock value fell significantly in 2021 due to various scandals, following legal actions against the company for sexual harassment and discrimination. They allege that Kotick sought to protect himself by negotiating the acquisition with Microsoft for $95 per share amid growing pressures.
Embracer’s Response
Embracer has firmly denied any coordination with AP7 regarding the lawsuit. A spokesperson for Embracer stated there was no collaboration with the pension fund that could be linked to Kotick’s claims. They emphasized the independence of their competitive strategies against Activision.
Kotick’s Counterclaims and Allegations
Kotick’s legal team argues that the lawsuit has ulterior motives and plays into a narrative that could harm Activision’s reputation and performance. He has also targeted the Communications Workers of America (CWA), alleging they generated false perceptions of workplace issues at Activision to provoke unionization efforts.
Background on Activision’s Legal Troubles
In September 2021, Activision Blizzard resolved a separate lawsuit from the U.S. Equal Employment Opportunity Commission, which resulted in an $18 million fund for victims. Kotick, at the time, reiterated his commitment to eliminating discrimination and harassment from the company.
As the lawsuit unfolds, its implications for both Embracer and Activision may have lasting effects on their market strategies and reputations in the gaming industry.
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