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Bobby Kotick, CEO of Activision Blizzard, emailed staff after information of Microsoft’s successful $69 billion acquisition to say that he was “absolutely dedicated to serving to with the transition” and that he would keep on as CEO via the tip of 2023.
Kotick’s assertion left some ambiguity about his plans for 2024, however Bloomberg’s Jason Schreier reports that on January 1, Kotick will depart. It is “an enormous change for the online game trade,” Schreier writes, which appears virtually restrained, given Kotick’s longevity and up to date historical past. A number of staff Schreier spoke to are “very excited for this deal to undergo,” particularly to see leadership change.
Kotick, who has led Activision for greater than 30 years and orchestrated its merger with Blizzard, had thought-about stepping down in late 2021. Following a lawsuit from the state of California alleging a “frat boy tradition” rife with pay disparity and sexual harassment, a Wall Street Journal report alleged that Kotick didn’t act on lots of of abuse allegations throughout the firm and in addition stored the corporate’s board of administrators at nighttime. Activision was additionally sued by its shareholders and pressured by state treasurers over its secrecy and responses relating to the California lawsuit. All of this led to an employee walkout and calls for Kotick’s resignation.
Kotick stood quick via the flurry of criticism in 2021. In early 2022, Microsoft announced its intent to buy Activision, and the timing, in accordance with experiences from Bloomberg and the Wall Street Journal, was not a coincidence. Kotick, in accordance with Bloomberg, did not need to promote however had little leverage with Activision’s board to refuse a suggestion. Microsoft’s buy, at $95 per share, in comparison with the roughly $65 per share when the deal was introduced, provided Kotick each a monetary and narrative “sleek exit,” in accordance with the Journal’s sources.
Kotick instructed VentureBeat after the Microsoft announcement that he did not imagine the harassment and mismanagement accusations damage the corporate’s inventory. He cited delays in transport Overwatch and Diablo titles, together with Name of Responsibility‘s gross sales efficiency.
Whereas CEO of Activision, Kotick’s termination with out trigger, or “Termination by worker for good purpose following a change of management,” guaranteed him nearly $300 million. Bloomberg reports that Kotick’s windfall will doubtless be $375 million now that Microsoft’s acquisition has gone via.