Microsoft Switches Legal Counsel in Activision Deal Dispute Amid Political Tensions

Microsoft (NASDAQ:MSFT) has changed law firms in a shareholder lawsuit related to its $69 billion acquisition of Activision Blizzard (NASDAQ:ATVI), opting for Jenner & Block to replace Simpson Thacher in Delaware Chancery Court. The company did not specify the reason for the change but confirmed Simpson Thacher continues to advise on other matters.

Legal experts suggest such shifts can stem from cost considerations, potential conflicts, or strategic alignment. The New York Times first reported the switch.

The case centers on allegations that Activision improperly approved a draft version of the merger agreement rather than the final one. Microsoft is seeking court approval of the deal and aims to block a $15 million fee requested by lawyers representing an Activision shareholder.

Jenner & Block, which previously worked with Microsoft, is currently engaged in a legal battle with the Trump administration over executive orders targeting law firms perceived as hostile. These orders included revoking security clearances, restricting federal contracts, and barring access to government buildings. Jenner called the actions “an unconstitutional abuse of power” aimed at punishing firms tied to the Russia probe into Trump’s 2016 campaign.

Meanwhile, Simpson Thacher is part of a group of nine firms pledging nearly $1 billion in pro bono legal services to the White House, aligning with Trump despite prior pressure against such firms.

On April 11, a group of top U.S. general counsels, including a former Microsoft lawyer, filed a brief supporting Jenner and its allies, arguing that Trump’s actions force companies to select legal counsel based on political safety rather than merit.

The landmark Activision deal, announced in 2022, remains the largest in gaming history.