Kotick Claims Lawsuit Against Microsoft-Activision Deal Was Linked to Embracer's Sales Ambitions

Former CEO of Activision Blizzard, Bobby Kotick, has stated that a lawsuit filed by a Swedish pension fund, Sjunde AP-Fonden AP7, was motivated by Embracer's desire to gain a competitive edge in the California market at Activision's expense. The lawsuit, filed in 2022, objected to Microsoft's $69 billion acquisition of Activision Blizzard, alleging that Kotick rushed the sale to avoid consequences of sexual misconduct scandals. Kotick has denied these allegations, describing the lawsuit as a 'collateral attack' on Activision Blizzard that appears to be connected to Embracer's efforts to boost its game sales while hindering Activision's development of competing titles. In response, Kotick's legal team has filed a counterclaim against Embracer, alleging that AP7's lawsuit was filed for ulterior motives and to harm Activision. Embracer has denied these claims, stating that it did not need assistance from the pension fund to compete with Activision. The lawsuit also addressed the significant decline in Activision Blizzard's stock price in 2021, which AP7 attributed to sexual misconduct scandals. Kotick has reiterated his claims that the allegations were fabricated and that the Communications Workers of America (CWA) submitted 'fake' complaints to create a false perception of systemic workplace issues. He alleges that the CWA needed a reason for employees to consider unionization and therefore created a scheme to fabricate workplace problems. In September 2021, Activision Blizzard settled a lawsuit with the US Equal Employment Opportunity Commission, establishing an $18 million victims' compensation fund. Kotick stated that the company settled the lawsuit because it was costly and time-consuming, and that there were no systemic issues of the sort alleged by the plaintiff.