Activision investors encouraged by SOC Investment Group to vote against Microsoft acquisition

There appears to a general assumption that Microsoft’s acquisition of Activision is set in stone. In actuality, it still has some hurdles to jump before the deal is finalized. For instance, it’s being reviewed by the Federal Trade Commission to ensure it doesn’t violate antitrust laws. Even U.S. senators have expressed concerns over it.

Now, the SOC Investment Group has penned a letter to Activision’s shareholders asking them to actively reject the deal. In order for the acquisition to go through, it must receive a majority vote by Activision’s shareholders, which will take place on April 28.

As for why it doesn’t want the deal to be approved, the SOC Investment Group argues that the deal fails to properly value Activision and its earnings potential, ignoring the role the sexual harassment lawsuits and the ensuing fallout have had on its share price.

It adds: “We are skeptical that any transaction with Microsoft (or a similar acquirer) would be viable, given the shift in the climate of antitrust enforcement, as well as evident sources of potential harms to competition stemming from the merger.”

Instead, it thinks what should be done is for the current board of directors to be replaced with those that “would allow the company to assume its real potential, including actively engaging with and empowering Activision employees in their effort to rebuild the corporate culture and restore the company’s reputation.”

The SOC Investment Group has been highly critical of Activision in the past and was among those calling for the resignation of CEO Bobby Kotick, who will remain in charge even after the acquisition is complete, assuming it does go through in the end.