With the Microsoft Acquisition of Activision Blizzard now completed, one question on the minds of many is the fate of Bobby Kotick, the CEO of Activision Blizzard. The $68.7 billion acquisition stretched twenty-one months before finally coming to an end on October 13. It will be a new era for both Microsoft and Activision Blizzard, and gamers will watch keenly to understand how it impacts the industry.
As both companies transition, Kotick is expected to retain his position “through the end of 2023”, according to Phil Spencer, the head of gaming at Microsoft. What remains unclear is whether he would immediately exit the company in 2024. Spencer and Kotick sent emails to staff on Friday morning to inform them about the completion of the acquisition.
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According to the email which was published by Microsoft, Kotick will report directly to Spenser “to ensure a smooth and seamless integration”. The exact date of Kotick’s departure is still not clear. Activision Blizzard representatives declined to comment on the topic.
In 2022, the Wall Street Journal reported that both Activision Blizzard and Microsoft had agreed that Kotick would step down as soon as the acquisition was completed. Neither of the companies publicly confirmed this claim.
Kotick could earn as much as a $15 million golden parachute payment if he is fired without “cause” or departs the company for “good reason” according to financial documents. Also, other top executives will receive between $2.6 million and $4.1 million. Spencer promised to share a “new organizational structure” in the coming months.
Why Kotick’s future at Activision Blizzard is of public interest
Kotick became the CEO of Activision in 1991 after purchasing a company stake the previous year. He has held that position for 32 years. A merger with Vivendi’s gaming department in 2006 brought Blizzard into the family. That was when the company’s name morphed into Activision Blizzard.
In 2016, Activision Blizzard finalized the acquisition of mobile game giant, King. This added a successful mobile game business to the company’s portfolio. Kotick has been one of the highest-paid CEOs in the United States. Besides the golden parachute, Kotick holds millions of shares in the company.
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Back in 2021, the California Civil Rights Department’s investigation of Activision Blizzard led to a lawsuit focusing on discrimination and widespread sexual harassment. A Wall Street Journal report published in the same year claimed Kotick was informed about employee misconduct, including an alleged rape case.
The report also claimed that Kotick had been accused several times of mistreating women. One incident that was highlighted was when he allegedly sent a voicemail to his assistant with death threats. In a reactionary comment, Kotick shared a message with an emphasis on his desire to foster “the most welcoming and inclusive workforce”.
After the report went viral, hundreds of Activision Blizzard staff staged a walkout of their duty and called for Kotick’s resignation. It is on record that staff of the company have twice walked out of their roles in protest regarding the aforementioned problems.
Several other decisions that Kotick has made at Activision Blizzard have made him quite a controversial figure in the gaming industry. For example, in 2018, Activision Blizzard announced a record revenue. However, the company still laid off 800 employees.
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“While our financial results for 2018 were the best in our history, we didn’t realize our full potential,” Kotick said at that time.
During the heat of the controversies, several key players including Spencer said Microsoft would be “evaluating” its relationship with Activision Blizzard. After acquiring Activision Blizzard, it is highly unlikely that Microsoft will like to have the moral stench of Kotick’s past hanging around them for long.
By the way, are you excited about the Microsoft takeover of Activision Blizzard? Share your thoughts in the comment box below.
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