An exclusive report from Forbes reveals that Activision Blizzard CEO Bobby Kotick will be leaving the company after 32 years of service, according to a statement from the company. This decision comes more than two months after Microsoft acquired Activision Blizzard in a deal worth $68.7 billion.
Key Information
Kotick will officially resign on December 29, according to reports from October, and the CEO will receive more than $375 million in compensation following Microsoft’s acquisition of Activision Blizzard.
Kotick, who became CEO of Activision in 1991, stated in an email to employees that the company “could not be in better hands,” referring to Microsoft, which completed its acquisition of Activision Blizzard in October after a long series of regulatory legal battles.
Activision Blizzard did not respond to Forbes’ request for comment.
Important Quote
“For many of you, your day-to-day business will remain the same – it’s still business as usual in delivering innovative experiences to more players around the world,” said Xbox head Phil Spencer in the internal memo. “At the leadership level, these changes will provide the clarity and accountability needed to achieve our ambitious goals and foster a welcoming, empowering, and committed culture of gaming for everyone.”
Interesting Facts
Microsoft’s acquisition of Activision Blizzard made it the third-largest gaming company in the world after Sony and Tencent, the latter of which owns stakes in prominent firms like Epic Games, Riot Games, and Bluehole.
Main Background
Kotick’s tenure at Activision Blizzard saw significant growth for the company as it produced some of the most popular game franchises like “Call of Duty,” “Diablo,” and “Warcraft.” His time as CEO was marked by internal struggles within the company due to allegations of systemic harassment. Kotick defended the company, blaming the negative image from a labor movement that attempted to “destabilize the company” in an interview with Variety. These defensive comments about Activision Blizzard came despite the payouts made to settle workplace abuse complaints, including a $35 million settlement issued by the Securities and Exchange Commission, which claimed the company did not have adequate measures in place to handle reports of workplace misconduct and violated whistleblower protection rules. Activision Blizzard, which neither confirmed nor denied the allegations as part of the SEC settlement, hired external consultants from the U.S. Equal Employment Opportunity Commission to investigate the company. The investigation concluded that there was no widespread or systemic harassment or retaliation or discrimination within Activision Blizzard, nor was there evidence of ignoring misconduct complaints from senior executives.
Further Reading
Activision Blizzard Will Pay SEC $35 Million To Settle Claims (Forbes)
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