It remains unclear whether the $69 billion deal between Microsoft and Activision Blizzard will actually materialize. None of the competition authorities currently considering the acquisition have given their approval – and famous US senators have also recently called for strict scrutiny.
In a letter to the FTC that Diem The Wall Street Journal Four senators, including Elizabeth Warren and Bernie Sanders, have asked the US Trade Council to review whether the proposed deal could add to the wave of allegations of sexual assault, harassment and retaliation at Activision Blizzard.
One particular concern: Activision Blizzard CEO Bobby Kotik may be allowed to stay on the job until the deal’s slated closing date in 2023, possibly getting his massive severance package. Last summer, more than 1,800 employees sent an open letter calling for Kotick to resign.
“If the deal allows Kotick to evade responsibility, even though he is responsible for this corporate culture and employees and the public are demanding consequences, this would be an unacceptable outcome of the planned acquisition of Microsoft,” the letter read. If the Federal Trade Commission (FTC) determines that the acquisition will worsen the negotiating position of workers, the agency should reject the deal, senators demand.
The contributor still expects the deal between Microsoft and Activision Blizzard to close. Activision Blizzard’s stock, which is currently about $14 less than its $95 takeover offer, has speculative opportunities in the medium term. On the other hand, Microsoft stock remains an essential long-term investment.
