The largest acquisition in the history of the gaming industry - Microsoft's purchase of Activision Blizzard for $95 per share ($68.7 billion in total) - is now facing new questions and legal turmoil. Although the transaction amount is huge, some shareholders, including Sweden's Seventh National Pension Fund, believe that the price does not fully reflect the company's value, causing damage to shareholders' interests.
The focus of the dispute points directly to the timing and motivation of the transaction. Recently, former Activision Blizzard CEO Bobby Caudick responded to a shareholder lawsuit, refuting the idea that the company was "selling on the cheap" because he was eager to get rid of the sexual harassment accusations that he and the company faced. He claimed that choosing to sell at this time just reflects the forward-looking management of management, because the console industry is facing a severe decline, and the sales of the "Call of Duty" series are said to have plummeted by more than 60% from the previous year. Caudick even alleged that the Swedish group Embracer was behind the lawsuit, which was intended to damage Activision Blizzard's market position and take the opportunity to compete for talent.
However, Caudick's claims lack public data to support them. Neither Activision Blizzard nor Microsoft has confirmed that Call of Duty sales have dropped so sharply. Industry data shows that sales in the US console market are indeed weak at the end of 2025, but the accusation of blaming the lawsuit on competitors has also been clearly denied by Embracer Group.
Currently, this lawsuit is still under investigation and trial. Is the deal really "too cheap"? Is it a wise decision by management, or is it a hasty move in response to a scandal? Feel free to share your views in the comment section.