Antrax

Member
Oct 25, 2017
13,403
Why is an employee prohibited

They aren't. This isn't a legal restriction, just something ABK agreed to with Microsoft to move forward with the deal. ABK could enter a CBA but would potentially have their deal with Microsoft canceled or altered. That's why the agreement says they could do any of this with Microsoft approval (that is, if Microsoft agrees that such a move would not bother them on the overall acquisition)
 

Nida

Member
Aug 31, 2019
11,363
Everett, Washington
This is like that episode of Superstore where their company agreed to all their union terms because they were being bought out which would nullify the deal...
 

Jogi

Prophet of Regret
Member
Jul 4, 2018
5,503
Having gone through M&A in a completely unrelated field, this seems fairly obvious? MS bought them as their day to day and working structure currently is, so major changes can cause absolutely massive ramifications to the deal.

It's also highly unlikely they will approve of the union push, assuming abk still pushes for one once fully acquired. Thank corporate America for massive amounts of propaganda into why unions are only for free loaders. 🤬
 

zombiejames

Member
Oct 25, 2017
12,060
A big merger fucking over workers?

WKhhLZc.png
 

Gavalanche

Prophet of Regret
Member
Oct 21, 2021
18,431
Did the employees agree to this stipulation? No? Then tough shit.

Yeah I understand the business reasons for why this is the way it is, but it does suck that for once workers managed to successful vote on an union, and it is just going to be nullified because they are being acquired by someone else.
 

TheMerv

Member
Jan 1, 2022
1,605
Do you think that MS spent 75 billion to bust a union?
A massive company like Activision unionizing would have had ramifications within the larger gaming industry. They didn't spend 75 billion just to stop this, more like a shitty bonus, but if Activision hadn't gotten bought someone somewhere would've done something to stop this.

No big videogame company wants their workers to get ideas.
 

Fabtacular

Member
Jul 11, 2019
4,251
This is all standard purchase agreement language.

Essentially, the acquirer always prohibits the target company from actions/transactions "outside the ordinary course of business" between signing and close without the acquirer's consent.

This ensures that the company that the acquirer agreed to buy is substantially the company that it gets at close, or that any difference is accepts to the buyer.
 

arsene_P5

Prophet of Regret
Member
Apr 17, 2020
15,438
A big merger fucking over workers?

WKhhLZc.png
That's standard language and for now MS has done nothing to screw them over just yet. I'd imagine most of them are happy they don't have to work under Kotick and a few other leaders much longer. Some of them even tweeted about being happy about the announcement of the merger. I hope MS recognize the union after the deal is done. Would be good for the employees.
 
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MondoMega

One Winged Slayer
Member
Jan 10, 2018
47,478
It's a shame Microsoft still won't approve after the acquisition process is through.
 

Apathy

Member
Oct 25, 2017
11,992
That's standard language and for now MS has done nothing to screw them over just yet. I'd imagine most of them are happy they don't have to work under Kotick and a few other leaders much longer. Some of them even tweeted about being happy about the announcement of the merger. I hope MS recognize the union after the deal is done. Would be good for the employees.

There are lots of things that could happen, but MS recognizing a union is not one of those things
 

Gavalanche

Prophet of Regret
Member
Oct 21, 2021
18,431
That's standard language and for now MS has done nothing to screw them over just yet. I'd imagine most of them are happy they don't have to work under Kotick and a few other leaders much longer. Some of them even tweeted about being happy about the announcement of the merger. I hope MS recognize the union after the deal is done. Would be good for the employees.

That is good optimism but zero chance. I would love to be wrong on this, I hope I am and everyone calls me out on it. But there is no way Microsoft allows the creation of a Union if they don't need to. They would be hoping that treating the employees better will be enough to shut down all union potential, when in reality one can exist with the other.
 

arsene_P5

Prophet of Regret
Member
Apr 17, 2020
15,438
That is good optimism but zero chance. I would love to be wrong on this, I hope I am and everyone calls me out on it. But there is no way Microsoft allows the creation of a Union if they don't need to. They would be hoping that treating the employees better will be enough to shut down all union potential, when in reality one can exist with the other.
I guess that's more likely. Still I hope they do allow it like they've done in Korea apparently (one user said that).
 

Pasha

Banned
Jan 27, 2018
3,018
Ohhh yeah man, I'm sure that ABK was just about to approve the unionization.... but man that MS acquisition is just totally not going to let them, ohhh man tough break. Bobby is probably super broken up about the whole thing, bad Microsoft, BAD!
 

arsene_P5

Prophet of Regret
Member
Apr 17, 2020
15,438
maybe they will after they lay off hundreds or thousands of ATVI employees for "redundancy"
That's actually unlikely, because Zenimax kept their employees by and large. After all Zenimax just like AB will operate independently first and foremost. Booty the Head of Xbox first party can't oversee every studio without help.

I am sure AB will see a few lay offs, because some of those people are rotten like Kotick for example. But outside of that I don't expect much change, based on how Zenimax got integrated.
 

ponzies

Member
Oct 28, 2017
1,277
That's actually unlikely, because Zenimax kept their employees by and large. After all Zenimax just like AB will operate independently first and foremost. Booty the Head of Xbox first party can't oversee every studio without help.

I am sure AB will see a few lay offs, because some of those people are rotten like Kotick for example. But outside of that I don't expect much change, based on how Zenimax got integrated.
ATVI is much larger than Zenimax and Microsoft is spending 75b, or 10x the amount they paid for Zenimax, so they will probably want to recoup their cash outflow much more aggressively, aka layoffs.
 

Scottoest

Member
Feb 4, 2020
11,453
The union thing is standard for M&A, and isn't restricted to unionization efforts. If you begin the process of an acquisition, you can't suddenly fundamentally modify the asset being acquired with something seismic like that. It's the same reason the deal would become null and void if, say, this summer ABK announced an exclusivity deal for Call of Duty with PlayStation for the next 10 years. Or if ABK sold off all their valuable IP tomorrow.

If pressed, I suspect you'll hear Microsoft say something along the lines of wanting to talk to the workers themselves once the acquisition is complete, to discuss their work/pay situation and what their goals are, without explicitly saying they do or don't support the unionization effort. This lets them kick the can down the road on staking a public position, where they'll probably quietly hope the effort loses energy.
 

Gabaghoul582

Banned
Nov 2, 2021
2,388
Oh, oh you think this news caught Phil and Satya off-guard?? Lol

A.) I fail to understand why a company that won't own another company for another year and half and hasn't even been approved yet could say they have the decision making matters when it comes to unionization.

B.) If somehow MS can make this decision, then did they also decide to delay CoD 23.
 

ToadPacShakur

Prophet of Truth
Member
Oct 25, 2017
3,471
A.) I fail to understand why a company that won't own another company for another year and half and hasn't even been approved yet could say they have the decision making matters when it comes to unionization.

B.) If somehow MS can make this decision, then did they also decide to delay CoD 23.

Who is saying that was an MS call though? Lol I saw you say it but that's it lol
 

Greent4

Prophet of Truth
Member
Oct 27, 2017
1,283
Charlotte, NC
A.) I fail to understand why a company that won't own another company for another year and half and hasn't even been approved yet could say they have the decision making matters when it comes to unionization.

If you read the full clause in the SEC document from the OP, you can see that it's largely about maintaining the business as is, as much as possible, until the merger is complete (the section is titled "Conduct of Business Pending the Merger").
 

MasterChumly

Member
Oct 25, 2017
3,916
Honestly this thread should be closed. This is standard baseline information for any merger. The company being bought out cannot make decisions to screw the company buying them. Any collective bargaining just goes straight to the company buying them out (Microsoft). This literally isn't union busting.
 

ponzies

Member
Oct 28, 2017
1,277
That's nothing but wild hypothesizing without a single shred of evidence to support it.

I'm going by their past history of laying people off after acquisitions

www.theverge.com

Microsoft announces biggest-ever job cuts: 18,000 in the next year

The Verge is about technology and how it makes us feel. Founded in 2011, we offer our audience everything from breaking news to reviews to award-winning features and investigations, on our site, in video, and in podcasts.

www.cnbc.com

Microsoft-owned LinkedIn cuts 960 jobs as coronavirus slows hiring

Microsoft's professional networking site LinkedIn said on Tuesday it would cut about 960 jobs, or 6% of its global workforce, as the coronavirus pandemic is having a sustained impact on demand for its recruitment products.
 

danm999

Member
Oct 29, 2017
17,329
Sydney
Microsoft will 10000% not approve the union and will use the acquisition to sell the idea all the workers complaints will be addressed.
 

gremlinz1982

Member
Aug 11, 2018
5,332
There are lots of things that could happen, but MS recognizing a union is not one of those things
I think this is also right. Microsoft will look to have them in a better working environment, and likely even a better wage package. Recognizing a union is not going to be one of the things likely to happen.
 

vixolus

Prophet of Truth
Member
Sep 22, 2020
56,540
I'm going by their past history of laying people off after acquisitions

www.theverge.com

Microsoft announces biggest-ever job cuts: 18,000 in the next year

The Verge is about technology and how it makes us feel. Founded in 2011, we offer our audience everything from breaking news to reviews to award-winning features and investigations, on our site, in video, and in podcasts.

www.cnbc.com

Microsoft-owned LinkedIn cuts 960 jobs as coronavirus slows hiring

Microsoft's professional networking site LinkedIn said on Tuesday it would cut about 960 jobs, or 6% of its global workforce, as the coronavirus pandemic is having a sustained impact on demand for its recruitment products.
Nokia was hardly a successful buyout hence why they had such drastic layoffs. And LinkedIn was 4 years after acquisition during a time where there were mass layoffs bc of the pandemic. Like ... duh? Why would this relate to the scenario with ABK?
 

RedRum

Newbie Paper Plane Pilot
Member
Oct 25, 2017
4,366
Another MS/Acti thread where it seems no one understands corporate business, financials, etc. Just more of the same.
 

Adventureracing

The Fallen
Nov 7, 2017
8,099
Honestly this thread should be closed. This is standard baseline information for any merger. The company being bought out cannot make decisions to screw the company buying them. Any collective bargaining just goes straight to the company buying them out (Microsoft). This literally isn't union busting.

Agreed. If someone wants to start a thread about the anti union practices in the gaming industry that's an important discussion to have. This is just the usual misinformation that everyone is rushing in to condemn whilst having no idea what it actually means.
 

Deleted member 43

Account closed at user request
Banned
Oct 24, 2017
9,271
This is completely standard.

MS will fight against allowing a Union just as hard as AB would have.

Both things are true.
 

ThatNerdGUI

Prophet of Truth
Member
Mar 19, 2020
4,573
I'm going by their past history of laying people off after acquisitions

www.theverge.com

Microsoft announces biggest-ever job cuts: 18,000 in the next year

The Verge is about technology and how it makes us feel. Founded in 2011, we offer our audience everything from breaking news to reviews to award-winning features and investigations, on our site, in video, and in podcasts.

www.cnbc.com

Microsoft-owned LinkedIn cuts 960 jobs as coronavirus slows hiring

Microsoft's professional networking site LinkedIn said on Tuesday it would cut about 960 jobs, or 6% of its global workforce, as the coronavirus pandemic is having a sustained impact on demand for its recruitment products.

Dude... Those LinkedIn cuts were 4 years after the acquisition and if you read the article it explains why it happened. If you going to pull random articles just to try to push your narrative at least read them.
 

bsigg

Member
Oct 25, 2017
22,683
I'm going by their past history of laying people off after acquisitions

www.theverge.com

Microsoft announces biggest-ever job cuts: 18,000 in the next year

The Verge is about technology and how it makes us feel. Founded in 2011, we offer our audience everything from breaking news to reviews to award-winning features and investigations, on our site, in video, and in podcasts.

www.cnbc.com

Microsoft-owned LinkedIn cuts 960 jobs as coronavirus slows hiring

Microsoft's professional networking site LinkedIn said on Tuesday it would cut about 960 jobs, or 6% of its global workforce, as the coronavirus pandemic is having a sustained impact on demand for its recruitment products.
While ignoring their more recent history in the gaming space where they've proceeded to grow every company they've acquired.