Ex-Activision CEO Kotick Accuses Embracer of Secret Lawsuit Plot with Microsoft
Former Activision CEO Bobby Kotick has made serious allegations against Embracer Group. He claims that a lawsuit filed against him was secretly orchestrated to damage Activision Blizzard while benefiting Embracer’s game sales. The lawsuit was initiated by the Swedish pension fund AP7 in Delaware’s Court of Chancery in 2022.
Kotick’s Allegations Against Embracer Group
The lawsuit targets Kotick, Microsoft, Activision Blizzard, and its former board of directors. It accuses Kotick of hastily negotiating Microsoft’s acquisition of Activision for $95 per share. According to the complaint, he sought to shield himself from growing pressures related to workplace misconduct allegations.
Background of the Lawsuit
In 2021, Activision Blizzard faced accusations of fostering a toxic work environment. The State of California previously sued the company for harassment and discrimination. Activision ultimately settled that case in December 2023 for $55 million.
- Lawsuit filed: 2022
- Settlement for California case: $55 million
- Microsoft acquisition price: $95 per share
Kotick has denied any wrongdoing and criticized the lawsuits as attempts to undermine his position and support unionization. In February of last year, he labeled the claims as “fake.”
Court Proceedings and Reactions
In October 2025, Delaware Chancellor Kathaleen McCormick allowed shareholders to pursue claims of fiduciary duty breaches against Kotick. Meanwhile, Kotick’s defense argues that the lawsuit serves Embracer’s interests, especially as AP7’s chair Emma Ihre had ties to Embracer at the time.
- Chancellor McCormick’s ruling: October 2025
- Shareholder claims: Related to fiduciary duties
According to Kotick’s legal team, the lawsuit was designed to weaken Activision’s market position, complicating its ability to recruit talent or expand. They suspect that this move was intended to boost Embracer’s sales prospects.
Embracer Group’s Response
Embracer Group dismissed Kotick’s claims, stating they are unfounded. A statement from the company emphasized a lack of collaboration or coordination with AP7. The representative noted that Embracer did not require assistance from a pension fund to compete with Activision.
Amid these legal disputes, Embracer was also attempting to secure a $2 billion funding deal with Savvy Games, linked to the Saudi government. The collapse of this deal led to significant cuts and job losses within Embracer.
Conclusion
Kotick’s accusations highlight ongoing tensions in the gaming industry. The unfolding legal drama has serious implications for both Activision Blizzard and Embracer Group. As the lawsuit progresses, the industry watches closely to see how these allegations will shape future operations.
