Microsoft's gaming merger with Activision is sued over by a court in Delaware that permits its shareholders to proceed with the case.

Another lawsuit has surfaced in the gaming world regarding Microsoft's merger with the makers of the video game Call of Duty and Activision Blizzard. A court judge based in Delaware ordered that former executives of Activision should be seen in a lawsuit initiated by shareholders and asserts that they violated fiduciary duties when it came to the deal.

As reported by Reuters, Chancellor Kathaleen McCormick believed reasonable allegations that Kotick had engineered the sale to benefit Microsoft so as to provide speed and certainty of the deal. It has been claimed by shareholders topped by the Sjunde AP-Fonden pension fund in Sweden that the gaming studio received a lower takeover price at the expense of prioritizing the personal interests of Kotick, such as the fleet of 400 million in benefits.

The lawsuit asserts that the merger undervalued Activision's increasing financial performance, which contributed to the regulatory process lasting 21 months and concluding in October 2023. Although some accusations against Microsoft were dismissed, the court found sufficient grounds to address the key claims.

This decision rekindles a questioning of the biggest gaming merger of all time, associating the issue of governance and shareholders' concern in the gaming sector. With the onset of litigation, the matter may have long-term implications for corporate behavior in big deals in the gaming industry.