Activision Blizzard/Microsoft Deal Discouraged by Letter Penned by SOC Investment Group
The Activision Blizzard purchase from earlier this year has some new information out for it. A quick recap, though; back in January 2022, Microsoft went and purchased the developer for just under $69 billion. It’s probably one of, if not, the biggest developer acquisition in recent years. The game developer’s acquisition is still ongoing, as it stands right now.
That said, the SOC Investment Group comes in at this point. The group forwarded a letter to Activision Blizzard shareholders, essentially urging them to vote against the Microsoft purchase. The stockholder meeting for this very topic is scheduled to occur in two weeks, on April 28th, 2022.
The letter sees the SOC saying, "This transaction fails to properly value Activision and its future earnings potential, in significant part because it ignores the role that the sexual harassment crisis-and the Activision board's incompetent handling of it-has played in delaying product releases and depressing the share price.”
The SOC also goes and mentions that the deal shouldn't go through in lieu of the workplace allegations the gaming firm has faced, which we have covered at length throughout the second half of 2021. This is also something that we've put special attention on previously from beginning to end previously.
The SOC wraps up by saying, “We do not believe that Activision shareholders should be looking to a transaction to rebuild the value lost by Activision management's failure to ensure workplace safety and equity and by the board's failure to respond constructively to the burgeoning crisis."
Today isn’t the first time the SOC has gone and made comments regarding the rather troubled developer. Last year, they’ve also gone and said that the publisher’s executives have to be held accountable for the misconduct crisis last year. Of course, there is a lot more to be said about how much value has been lost on Activision Blizzard following the scandal it's been facing.
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