Update (June 16, 2026): The defamation counsel of Bobby Kotick has since contacted Gamereactor to address the original report below. It expresses that the allegations of sexual misconduct levied against Kotick and the reference of "missteps" are in fact false. It's also noted that the sale of Activision Blizzard to Microsoft was not rushed to avoid any serious allegations and that the minor settlement Recitals in the overall sale (amounting to $0.30 per share in addition to the $95.00 each shareholder received in the merger) "confirm that there was never widespread misconduct at Activision."
Gamereactor was also provided the following full statement: "Microsoft is entering into this Stipulation solely to avoid the burden, expense, and distraction of continued litigation. Microsoft does not substantiate any allegations that there has been systemic or widespread workplace misconduct at Activision; that Activision senior executives ignored, condoned, or tolerated a culture of systemic harassment, retaliation, or discrimination; or that Activision's Board of Directors, including its Chief Executive Officer, Kotick, acted improperly with regard to the handling of any instances of workplace misconduct.
"Plaintiff acknowledges that its original claims were based in part on media reporting and characterizations of allegations made by the California Civil Rights Department (the "CRD"), which the CRD itself admitted in a court-approved consent decree have never been "substantiated" by any "court or independent investigation" and now have been expressly withdrawn.
"Plaintiff acknowledges that, based on the materials provided to date, there is compelling information which undermines any claim that the Board or Mr. Kotick failed to operate in good faith with respect to the matters alleged in the Action."
Original (May 25, 2026): Even though Microsoft paid a staggering $68.7 billion ($95 per share) for Activision Blizzard in the acquisition of the latter, by far the largest deal in the gaming world ever, many people feel they got off cheaply. Among them is the massive Swedish Seventh AP Fund (a pension fund), which claims that then-Activision Blizzard CEO Bobby Kotick rushed to sell the company to avoid serious allegations against him and the company, which included sexual harassment.
Kotick himself denies all allegations and argues that all shareholders should be grateful for the sale because "console sales are at an all-time low," which he thinks shows he sold at the right time. He also blames Embracer, which he says is behind the charges, although all without evidence.
But... maybe there was something to the Seventh AP Fund's case. Microsoft has now agreed to pay a quarter of a billion dollars, effectively buying its way out of the lawsuit instead of fighting it in court. Kotick himself, however, is not satisfied, and according to Game File, Kotick's team is once again claiming that Embracer is behind the claims:
"This Delaware lawsuit was apparently aimed to help pave the way for Embracer to increase its foothold in the California market at the expense of Activision, making it more difficult for Activision to recruit talent and expand through M&A activity of the sort that Activision relied on to grow historically.
"Embracer has also commented on the case, telling Game File that it is "perhaps difficult to accept for Mr. Kotick, but we did not and do not need any help from a Swedish pension fund in competing with Activision."
Boom, as the kids say. Even though the case is now closed, we'll see if Kotick can resist commenting any further.
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