Bobby Kotick Claims Microsoft-Activision Lawsuit Aims to Aid Embracer Group
The long-standing legal battle surrounding Microsoft’s $69 billion acquisition of Activision Blizzard has taken a striking turn. Bobby Kotick, the former CEO of Activision Blizzard, has publicly addressed claims made in a lawsuit that he hurried the sale to escape scrutiny from misconduct scandals within the company.
Background of the Lawsuit
This lawsuit was initiated by the Swedish pension fund, Sjunde AP-Fonden (AP7), in late 2022. It was filed in Delaware’s Court of Chancery and accuses Kotick of rushing the deal in late 2021 to evade ramifications related to workplace misconduct.
AP7 is trying to turn the case into a class action. They aim to secure additional payments for shareholders and challenge the validity of the deal. The lawsuit names Microsoft, Activision Blizzard, and its former board of directors, including Kotick.
Kotick’s Response
In a court filing submitted in December, Kotick has officially denied all allegations made by AP7. His defense also attempts to shift blame for the company’s scandals and the resulting lawsuit onto other industry players.
In particular, Kotick implies that The Embracer Group, a competitor known for franchises like Tomb Raider and Dead Island, may have a hidden agenda in this lawsuit. He claims it could help Embracer strengthen its position in the California market, which would hamper Activision’s ability to attract talent and engage in mergers and acquisitions.
Embracer Group’s Denial
In a swift response, Embracer Group has denied any involvement in the lawsuit’s proceedings. They clarified that they do not require assistance from a Swedish pension fund to compete effectively with Activision.
Key Points of the Lawsuit
- Date Filed: Late 2022
- Accusing Party: Sjunde AP-Fonden (AP7)
- Defendants: Microsoft, Activision Blizzard, Bobby Kotick, and former board members
- Main Claims: Rushed sale to evade misconduct consequences, potential shareholder payments, and deal invalidation
- Competitive Angle: Accusation against The Embracer Group as a beneficiary
This situation continues to evolve, and the courtroom drama between Kotick, AP7, and the Embracer Group presents a fascinating chapter in the gaming industry’s legal landscape.
