A US Securities and Exchange Commission filing details the nearly two month long acquisition talks between Microsoft and Activision Blizzard, which resulted in the announcement of the massive $68.7-billion deal to buy the company out.
According to the filing, head of the Xbox division at Microsoft, Phil Spencer began talks with Activision Blizzard CEO Bobby Kotick three days after a Wall Street Journal expose that claimed the CEO was not only aware of the harassment and toxic workplace issues at the company, but actively tried to protect people involved.
Also Read: US SEC reportedly investigating Activision Blizzard over harassment and abuse allegations
This was after months of the company reeling from accusations of sexual harassment at the workplace that saw many of its top leaders exit.
As per the filing, part of the reason why the talks moved at an accelerated pace was because other companies were also seemingly interested in buying the game developer out after the stocks took a nosedive, following the allegations.
There were at least four more companies that were interested in Activision Blizzard, and though they have not been named in the filing, one of them was reportedly only interested in buying out Blizzard but the deal fell through when the board concluded it would be difficult to pull off.
Also Read: Game on for Microsoft as it acquires Activision Blizzard in mega deal
As for other details of the proposed deal, which is currently under investigation by the US Federal Trade Commission, Microsoft will pay Activision Blizzard $3 billion if the deal does not go through.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
