SOC Investment Group Urging fellow shareholders Activision Blizzard to Vote against the merger proposed by Microsoft Xbox. The investor believes that the agreement is not up to the potential of the company and that it is not the solution to the company’s problems.
The SOC Investment Group He was highly critical of Activision Blizzard after recent sexual harassment and discrimination lawsuits (which we remember are still mostly pending), and last November he called for the resignations of its most famous directors, including CEO Bobby Kotick, Chairman Brian Kelly and Independent Director Robert Morgado.
SOC Investment Group Books A message to fellow contributors Their call to reject the proposed merger for two reasons. The SOC argued, “This transaction failed to properly assess Activision and its future earnings potential, in part because it ignores the role that the sexual harassment crisis—and the incompetent management of Activision’s board of directors—has played in delaying product launches and driving down the share price.”
The investment group also said it was “skeptical that any deal with Microsoft (or a similar buyer) would be possible given the change in the antitrust enforcement environment, as well as the obvious sources of potential competitive damage from the merger.”
I remember Microsoft said they hope so Complete the transaction in the first half of 2023. The US Federal Trade Commission (FTC) is conducting an antitrust review to determine whether the acquisition would give Xbox an unfair competitive advantage.
four US Senators He recently wrote to the Federal Trade Commission to express their concerns about the proposed merger, which they said would already hamper union efforts and “threaten worker liability claims” regarding allegations of sexual misconduct and discrimination.
in that letter The SoC said Thursday: “We don’t believe Activision shareholders should aim for a deal to rebuild the value lost after Activision management’s failure to ensure workplace safety and equity and subsequent bankruptcy. A nascent crisis.”
“But we also note that, at least since last July, Activision employees have courageously called for an end to harassment and retaliation in the company and to play a critical role in reshaping the company’s culture going forward.”
“We believe that only by constructive engagement with its workforce — the one asset that Activision cannot sell but without which the company cannot operate — can the company embark on a real breakthrough and restore investor confidence in its reputation and operations.”
“We invite you to join us in rejecting Microsoft’s proposed merger and electing a new, competent and dedicated Board of Directors at Activision Blizzard’s upcoming annual meeting.”
Recently, we also found out that the California governor is accused of interfering in the lawsuit against Activision.