Former Activision Blizzard CEO Bobby Kotick has alleged that a lawsuit challenging Microsoft's $68.7 billion acquisition of the publisher was covertly intended to benefit Embracer Group, according to a report by VGC.

The claim centers on litigation brought during the extended regulatory scrutiny of the Microsoft-Activision Blizzard deal, which closed in October 2023 after approval from the UK's Competition and Markets Authority and clearance in the European Union and United States. Kotick, who departed Activision Blizzard upon completion of the acquisition, asserts that the legal action was not pursued in good faith but was instead secretly aimed at advancing the interests of Embracer Group, the Swedish holding company that spent heavily on studio acquisitions between 2020 and 2022 before hitting a debt crisis in 2023.

Kotick's allegation adds a new dimension to the long-running controversy over the deal, which drew opposition from competitors — most prominently Sony — over concerns that Microsoft could make Call of Duty exclusive to Xbox platforms. Microsoft ultimately signed binding agreements to keep the franchise on PlayStation and signed streaming rights for Activision titles over to Ubisoft to satisfy the CMA.

The specifics of which lawsuit Kotick is referring to, and what evidence he offers to support the claim that Embracer stood to gain, were not detailed in the headline-level report. VGC's coverage indicates the allegation forms part of Kotick's broader public commentary on the acquisition process, during which he has previously criticized regulators and rival executives for prolonging the deal's timeline.

For studios and industry observers, the claim raises questions about how third-party litigation was used as a lever during the 20-month regulatory fight, and whether corporate rivals sought to shape the outcome through legal channels rather than direct intervention. Embracer, which was simultaneously dismantling its own acquisition empire through divestments and studio closures, has not publicly responded to the allegation.

Watch for whether Kotick elaborates with specifics — and whether Embracer or any of the parties to the original litigation respond — as the claim is likely to draw legal scrutiny of its own.