Two weeks before a special investor meeting was held, SOC Investment Group urged the majority and minority shareholders of Activision Blizzard to vote against the proposed acquisition by Microsoft.
“This transaction fails to properly assess Activision Blizzard and its future earning potential, not least because it ignores the role that the sexual harassment crisis – and the incompetent management of Activision Blizzard’s board of directors – have played in postponing product launches and in the decline in the share price. We are skeptical of the viability of a transaction with Microsoft (or a similar buyer) given the changing climate of antitrust enforcement, as well as the obvious sources of potential competitive harm from this consolidation.“reads the letter.
According to SOC Investment Group, investors must primarily elect a capable and dedicated new board at the next annual meeting, and leave CEO Bobby Kotick, Chairman of the Board Brian Kelly and Chief Executive Robert Morgado.
“We do not believe that Activision shareholders need to look to a transaction to rebuild the value lost from Activision’s management inability to provide workplace safety and equity and the inability of the Board of Directors to respond constructively to the emerging crisis. But we also note that, at least since last July, Activision employees have bravely demanded that harassment and retaliation end up in the company and play a decisive role in reshaping the corporate culture to come.“.
The acquisition process is currently still underway and if everything goes the right way, the deal should close permanently next year.
Source: VGC
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