As New York City officials group sue Activision Blizzard, what will be its likely implication on the Xbox deal?
There has been a fresh twist in Xbox's potential takeover deal of Activision Blizzard as a lawsuit has been filed against the company and CEO Bobby Kotick. The latest charges have been brought on by the New York City Employees' Retirement System and pension funds for the city's teachers, police, and firefighters.
The group is an active owner of shares in the company and has brought some serious charges against the company. The bigger question will be whether the deal between Microsoft's gaming division and Activision Blizzard could now be in danger.
This is just the latest of several lawsuits that have been filed against the US-based company. Bobby Kotick and his team's handling of charges of gender-based differences and misbehavior in the office are the main bone of contention.
The affair has reached such a point that many have called for Kotick's dismissal in the past. To make matters worse, the situation now gets more and more complicated for Microsoft and Xbox.
As reported by Axios, a fresh lawsuit has been filed against Bobby Kotick and Activision Blizzard board over wrongdoings involving the Xbox deal. The report has accused the wrongdoers of seeking an easy way out by accepting the agreement.
Additionally, there has also been a charge that the valuation hasn't been met as Xbox's price is lower than the actual price.
Incidentally, the current share prices of Activision Blizzard are lower than the price at which the deal will go through. However, much of the depreciation in share values has been over the issue's mishandling.
From the looks of it, the simple answer will be no. When one analyzes the details of the charges, it's pretty clear who is being targeted.
The accusations are clearly against the board and Kotick in
Read more on sportskeeda.com
