Microsoft approached Activision about $69B deal days after misconduct allegations
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Microsoft (NASDAQ:MSFT) reached out to Activision Blizzard (NASDAQ:ATVI) to talk about a potential strategic combination just days after a report came out about allegations of sexual misconduct at the videogame maker.
On Nov. 19, Phil Spencer the CEO of Microsoft Gaming, in a conversation with Activision (ATVI) CEO Bobby Kotick, asked whether it would be possible to have a call with MSFT CEO Satya Nadella to discuss "strategic opportunities" between the two companies, according to a regulatory filing from Friday. In a call on Nov. 20, Nadella indicated that MSFT was interested in exploring a "strategic combination" with ATVI.

The timing of the discussions follows Activision stock initially dropping 6% on Nov. 16 after the WSJ reported that Kotick allegedly knew for years about sexual-misconduct allegations and kept some reports from the board. The shares fell another 5% over the next two days before Spencer and Kotick spoke on Nov. 19.
The conversations also came after a report on Nov. 18 that Xbox chief Spencer told his staff he was "evaluating all aspects of our relationship"
with Activision Blizzard and that he was " disturbed and deeply troubled by the horrific events and actions" described in the WSJ report.
Microsoft (MSFT) initially offered to acquire Activision (ATVI) for $80/share in an all-cash deal on Nov. 26, according to the filing. On Nov. 28, ATVI proposed it may be willing to entertain a deal if was from $90 to $105/share. After negotiations, the parties eventually agreed to a $95/share deal, which was announced on Jan. 18.

Activision (ATVI) also had talks with four other undisclosed companies about a potential transaction as well as an unidentified individual who was interested in pursuing an acquisition of the company's Blizzard business or a full or partial take-private of the entire company.
Also see from Friday, Activision Blizzard facing hotter pressure in workplace probes.