Activision Blizzard Sues Netflix for Allegedly Poaching Its Former Finance Chief
December 04 2020 - 6:48PM
Dow Jones News
By Sarah E. Needleman
Activision Blizzard Inc. is suing Netflix Inc. for allegedly
poaching its former finance chief and causing competitive harm,
citing a pattern of behavior by the streaming giant.
In a complaint filed in Los Angeles Superior Court Friday, the
videogame publishing company said Netflix illegally recruited
Spencer Neumann in late 2018, prompting a contract breach that
disrupted business operations. Activision said the move also cost
it business opportunities as well as millions of dollars paid out
to retain other executives.
Mr. Neumann, who previously held roles at the Walt Disney Co.
and private-equity firms, joined Activision as its finance chief in
May 2017. The employment contract initially carried a three-year
term.
"Netflix has a demonstrated pattern of caring only about
attracting and employing whoever Netflix wants, regardless of
whether it violates the law along the way," the suit claims.
A spokesman for Netflix declined to comment on the lawsuit.
Activision, known for its Call of Duty and World of Warcraft
franchises, further argued in its complaint that Netflix gained an
unfair competitive edge in recruiting Mr. Neumann while he was
still under contract. The videogame company said that at the time
it was negotiating a partnership for the streaming service to
distribute original new TV shows based on its properties. That deal
never happened.
Netflix has faced accusations of poaching before. Last year a
California judge issued an injunction against the company to
prohibit it from trying to hire Fox television and film executives
who were under contract. The decision stems from a 2016 lawsuit
filed by units of 21st Century Fox against Netflix.
21st Century Fox shared common ownership with Wall Street
Journal parent News Corp.
The new lawsuit comes as Netflix has spent years battling
Hollywood to become an entertainment powerhouse with original and
acquired content spanning comedy, children's fair, reality TV and
more. It has been spending billions of dollars annually to grow its
catalog, driving up costs industrywide and creating a scarcity of
equipment and talent.
Netflix and Activision once got along. The streaming service in
2016 added "Skylanders Academy," an animated series based on the
videogame company's Skylanders franchise that is still available to
Netflix subscribers.
Now the entertainment juggernauts are at odds. After reports
emerged about Netflix's hire of Mr. Neumann, Activision said it
placed the executive on paid leave and that he would subsequently
be fired for cause.
The videogame company's chief corporate officer at the time,
Dennis Durkin, took over as chief financial officer, a post he had
previously held and still holds today.
In its lawsuit, Activision said it is seeking a jury trial and
for Netflix to pay damages.
(END) Dow Jones Newswires
December 04, 2020 18:33 ET (23:33 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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