Par , published on April 15, 2022 at 06:42.
Activision Blizzard shareholders will meet on April 28 to vote for or against the acquisition of the American publisher.
Two weeks before the holding of a special meeting with investors, SOC Investment Group urged the majority and minority shareholders ofActivision Blizzard to vote against the proposed takeover of Microsoft for $68.7 billion: “This transaction fails to properly assess Activision Blizzard and its future earnings potential, not least because it ignores the role that the sexual harassment crisis ““and the incompetent management of Activision Blizzard’s board of directors”“ has played in the delay in product releases and the decline in the share price. We are skeptical of the viability of a transaction with Microsoft (or a similar acquirer), given the changing antitrust enforcement climate, as well as the obvious sources of potential competitive harm from this consolidation. .»
For SOC Investment Group, investors primarily need to elect a capable and dedicated new board at the upcoming annual meeting, while getting rid of CEO Bobby Kotick, board chairman Brian Kelly and principal independent director Robert Morgado: “We do not believe Activision shareholders should look to a transaction to rebuild the value lost by Activision management’s failure to provide workplace safety and fairness and by the failure of Board of Directors to respond constructively to the emerging crisis. But we also observe that at least since last July, Activision employees have courageously demanded that harassment and retaliation end in the company and that they play a decisive role in reshaping the corporate culture to come. . We believe that only by constructively engaging with its employees ““the one asset Activision cannot sell but without which the company cannot operate”“ can the company begin a true turnaround. and restore investor confidence in its reputation and operations.»
Microsoft said it hopes to close the transaction in the first half of 2023, subject to closing conditions and the completion of a regulatory review. The Federal Trade Commission (FTC) is currently conducting an antitrust review to determine whether the takeover would confer an unfair competitive advantage on the American giant in the market for video games. Finally, four U.S. senators recently wrote to the FTC expressing concern about the Activision Blizzard takeover, which they say has already hampered organizing efforts and “threatens workers’ accountability claims” over allegations of sexual misconduct and discrimination.
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