Microsoft breaks new hurdle to buy Activision Blizzard, but the big deal is still missing

microsoft took an important step closer to completing the purchase ActivisionBlizzard for 68.7 billion dollars. Video game studio shareholders massively approved the acquisition by the Redmond firm; Thus, the only thing missing is the approval of the regulators – after all, this is the most important step – to close the deal.

As reported, Activision Blizzard’s Extraordinary Shareholders Meeting gave a peremptory voting result: 98% approved of the purchase of Microsoft. As such, the overwhelming majority of participants reacted favorably to the offer of the company, led by Satya Nadella, who would pay $95 per share in an all-cash deal.

Bobby Kotick, the company’s current CEO, made no secret of his satisfaction at winning shareholder approval. “The overwhelming vote of support for our shareholders confirms our shared belief that, together with Microsoft, we will be in an even better position to create greater value for our players, including empowering our employees, and continue to strive to be an inspiring example. “A welcoming, respectful and inclusive workplace,” he said.

However, the last part of his statement is startling, as Kotick himself was named a key figure in the Activision Blizzard sexual harassment scandal that came to light last year. The manager was accused of not only creating and hiding a toxic work environment, but also be responsible for misbehavior. All indications are that the CEO will not remain in his post when Phil Spencer and Microsoft Gaming take control of the company.

Microsoft receives approval from Activision Blizzard shareholders

As we mentioned at the beginning, the positive shareholder vote brings Microsoft closer to completing its purchase of Activision Blizzard; however, it is still awaiting final regulatory approval. This is expected to happen next financial yearwhich ends June 30, 2023.

The investigation is being conducted by the Federal Trade Commission, which has been collecting information about this agreement over the past few months. The body, led by Lina Khan, will focus on three main points to determine whether the deal should be approved or rejected: access to public data, the video game developer’s job market, and the possible impact of the deal between those who reported war in the workplace. .

Meanwhile, Microsoft claims that No Reason to Block Acquisition of Activision Blizzard Based on Anti-Competitive Arguments. Satya Nadella’s rationale for this position was that the video game market is too fragmented; and confirmed that even this acquisition would not make Redmond the top earning firm in the sector.

Redmond residents have vowed to look into complaints of sexual harassment.

Negotiations between the parties to analyze a possible acquisition began just a couple of days after the scandal erupted over allegations of sexual harassment at Activision Blizzard. Microsoft has since promised don’t look away and give this topic the attention it deserves.

“I think if there’s one thing we’ve learned about dealing with issues like sexual harassment or pretty much any cultural problem people have, it’s that it really takes a combination of commitment and humility. We look forward to seeing the Activision Blizzard leadership team create culture. and “Make workplace safety a priority every day until this deal is made. And when we take responsibility, we will have to make the same commitment,” said Brad Smith, President of Microsoft.

However, there is also controversy over the role Bobby Kotick still plays in the video game company and the financial compensation he will receive. Since the current CEO of the studio owns about 4 million shares, would have pocketed over $375 million when the purchase is completed; and to this will be added $14.5 million in “golden parachutes” if he does not resign of his own free will before the deal is completed.