Activision: New York sues company – is Microsoft’s acquisition in jeopardy?

As the portal Axios reports, it can be seen in New York Sue Activision. According to documents, Bobby Kotik was unable to negotiate a deal with Microsoft. Axios’s Stefan Totillo said an attempt had been made to expedite the deal so that he and the board would be exempt from the risk of legal action over the company’s misconduct.

In this case, it seems, this is a serious delay in the acquisition process, which will not only prolong the transaction, but also Has the potential to break the transaction.

The lawsuit is a shareholder action in the Delaware Chancellery Court (technically a “220” lawsuit) that allows shareholders to force companies to open their books and potentially detect wrongdoing.

New York is requesting a long list of documents from Activision, including material related to the Microsoft deal, information about five potential buyers as indicated in the official description of Activision’s sales negotiations, board protocols and more.

The city has been asking Activision for internal documents since last year, initially to find out what CEO Bobby Kotik knew about sexual misconduct in the company. (This misconduct was the subject of a lawsuit).

According to the lawsuit, New York requested access to Activison books as an excuse for Kotik and the council members to sue. The value of the company should be depreciated. He expresses frustration with the fact that Kotik, which was already under fire, was involved in rapid negotiations to sell the company to Microsoft in late 2021.

The trial opened that day 26 April By the New York City Employees Retirement System and City Teachers, Police, and Firefighters Retirement Funds. this A group of people owns shares in ActivisionAccording to an Axios report, and believes that the actions of the gaming giant’s management are detrimental to the value of the company.

He also says that offer $ 95 / Microsoft Share depreciates the companyWhich was close to being traded before Activision’s public scandals last year.

Here he is likely to be “just” sued for damages because this group of people think that Bobby Kotick and Activision were trying to avoid payment. We know that shareholders have approved more than 98% of positive votes in the last week, so we do not seem to be taking a serious risk.

Buying a company of this size has a lot of investors and interest, so it is normal to have a really long time ahead of the bureaucratic phase. We expect it to be completed by June 2023.

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