The author of the complaint is more precisely New York City Employees Retirement System (NYCERS), one of the incarnations of the New York State pension system established in 1920. The pension fund, based in Activision Blizzard’s capital, has accused Bobby Kotick of brokering a takeover bid from Microsoft to evade his alleged wrongdoing as the company’s manager. Bobby Kotick was directly implicated in a Wall Street Journal investigation last November, according to which Kotick protected multiple employees accused of reprehensible behavior, and also reported the alleged death of an aide over the phone by the CEO . To complete the character’s portrait, we also recently learned from The Wall Street Journal that it was also his, Kotick’s ex-partner who obtained a restraining order in 2014, preventing him from approaching her in an ensuing harassment case.
The New York City lawsuit, filed in Delaware Chancery Court, aims to force companies to open their books and expose wrongdoing, if any. Aside from Kotick’s exit door and golden parachute, the pension fund believes that Activision Blizzard’s rush to do business with Microsoft has damaged the company’s value. In an already tougher argument, Microsoft offered $68.7 billion at $95.50 per share. It should also be remembered that more than 98% of shareholders have happily voted for the acquisition, apparently satisfied with this historic amount.
“The City of New York asked Activision for a long list of documents, including documents related to the Microsoft deal, information on five potential buyers cited in Activision’s official description of the sale talks, and instructions from the board of directors”, the Axios website reported on the existence of the complaint. The New York fund wants access to internal documents that could potentially implicate Bobby Kotick in a sexual misconduct case that has been sensational since the summer. Latest.
One thing’s for sure, Microsoft’s Bobby Kotick and Phil Spencer, by their own admission, are incredibly quick to negotiate for this level of operation. According to the leaders, the exchanges that led to the historic deal began last November, when Activision Blizzard bosses faced unprecedented pressure following the Wall Street Journal’s leading investigation.
“Given Kotick’s personal responsibility and responsibility for the deteriorating working conditions at Activision, the board should be clear that he is not fit to negotiate a sale of the company.“Critical complaint. NYC condemns the fact that this fast-track agreement allows”Kotick and his other directors escape liability for flagrant breach of fiduciary duty“Can we read?
“Microsoft began acquisition talks on November 19, 2021, but the board didn’t meet until two weeks later, on December 1, 2021, to discuss Microsoft’s approach. Between those two dates, there was no board approval or Microsoft’s actual offer, and Kotick happily informed Microsoft that it was willing to accept an offer of $90 to $105 per share.“, involving complaints.
“Not only does Kotick set a bid cap, but the speed at which trades are executed is predictable. The merger not only provided Kotick and his other directors with a way to escape liability for their flagrant breach of fiduciary duties, but also provided Kotick with the opportunity to reap substantial unshared profits.“, she added.
“We disagree with the allegations in this complaint and look forward to taking our case to court.,” an Activison Blizzard representative replied to the website Games Industry.
For Activision Blizzard, New York’s claim comes after California’s complaint sparked the whole thing, relentless pressure from activist employees still fighting for internal reforms and unions, even by Securities and Exchange Commission, the Federal Financial Markets Administration. It is in this context that Federal Trade CommissionThe agency charged with controlling anti-competitive business practices and other monopolistic situations is currently reviewing Microsoft’s bid.
- Also read | Activision Blizzard shareholders overwhelmingly favor Microsoft acquisition