Activision Blizzard CEO Bobby Kotick has yet to discuss his position after the Microsoft merger


Activision Blizzard CEO Bobby Kotick has yet to discuss his position after the Microsoft merger

In January of this year, Microsoft announced that it had purchased Activision Blizzard for a whopping $68.7 billion. For this staggering sum of money, Microsoft has purchased 100% of Activision Blizzard, which means Activision, Blizzard, King, and all of the companies’ studios will report to Microsoft when the acquisition is finalized. Currently, Bobby Kotick, remains controversial CEO of Activision Blizzard despite lawsuits and allegations against Activision Blizzard’s “frat bro” work culture. Although Kotick retained his position after the announcement, Microsoft CEO Phil Spencer said “Activision Blizzard’s business will report to me as CEO of Microsoft Gaming.”

Due to the nature of the acquisition, the U.S. Securities and Exchange Commission (SEC) will investigate the intricacies of the regulatory hoops that massive mergers must traverse. This process, as well as meetings with shareholders, to finalize the acquisition, is expected to take approximately one year. According to an Activision proxy sent to the SEC on April 15, talks on Kotick’s post-merger position have not yet been discussed. In the statement,

No discussions or negotiations regarding post-closing employment arrangements with Microsoft took place between Microsoft and Mr. Kotick prior to the approval and execution of the merger agreement and the transactions contemplated by it, or occurred after such approval and execution, up to the date hereof.

This proxy statement also mentioned investigations by the US Department of Justice and the SEC into possible insider trading by Kotick associates. Barry Diller, David Geffen and Alexander von Furstenberg are currently under investigation for buying 4.12 million Activision shares for $108 million on January 14, four days before the acquisition was announced. Between possible insider trading and Kotick knowing about the sexual harassment allegations for “years,” Activision Blizzard shareholders and employees argued that Kotick should step out of the company. Despite harsh criticism from Microsoft regarding Kotick’s response to the sexual harassment allegations, Kotick’s future still remains unconfirmed and ambiguous.


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