Activision Shareholders Approve $69B Microsoft Merger
Samson Amore is a reporter for dot.LA. He holds a degree in journalism from Emerson College and previously covered technology and entertainment for TheWrap and reported on the SoCal startup scene for the Los Angeles Business Journal. Send tips or pitches to samsonamore@dot.la and find him on Twitter @Samsonamore.
Activision Blizzard shareholders on Thursday voted overwhelmingly in favor of approving the video game developer’s $69 billion merger with Microsoft, paving the way for the gaming industry’s largest-ever acquisition.
More than 98% of Activision shareholders voted in favor of the deal at a special meeting, following the recommendation of the Santa Monica-based company’s board of directors. While the merger is expected to close by June 2023, the companies still need regulatory approval in the regions they do business in, including the U.S., the U.K., the European Union and China, Activision noted in a recent SEC filing.
Microsoft announced its plans to acquire the “Call of Duty” publisher for $95 per share in January—a premium on Activision’s current stock price, which closed Thursday’s trading at $76.70 per share.
“Today’s overwhelmingly supportive vote by our stockholders confirms our shared belief that, combined with Microsoft, we will be even better positioned to create great value for our players, even greater opportunities for our employees, and to continue our focus on becoming an inspiring example of a welcoming, respectful, and inclusive workplace,” Activision CEO Bobby Kotick said in a press release.
Despite Thursday’s vote, antitrust regulators at the Federal Trade Commission or the Department of Justice could still look to block the deal for fears that it would have an anticompetitive effect on the gaming industry. Activision is already facing regulatory scrutiny over alleged sexual harassment and discrimination in its workplace—issues that have prompted several current and former employees to file lawsuits against the company.
In its first-quarter earnings report this week, Activision reported a year-on-year slump in both sales and profits, citing lower-than-expected demand for its latest “Call of Duty: Vanguard” title.
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Samson Amore is a reporter for dot.LA. He holds a degree in journalism from Emerson College and previously covered technology and entertainment for TheWrap and reported on the SoCal startup scene for the Los Angeles Business Journal. Send tips or pitches to samsonamore@dot.la and find him on Twitter @Samsonamore.
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