Title: Bobby Kotick to Depart as Activision Blizzard CEO Following Microsoft Acquisition
Subtitle: Kotick’s departure marks a significant shift in the video game industry
Date: [Insert Date]
In a recent email to employees, Bobby Kotick, the CEO of Activision Blizzard, expressed his commitment to assisting with the transition following Microsoft’s successful $69 billion acquisition. However, despite the initial ambiguity surrounding his plans for 2024, it has been confirmed that Kotick will step down as CEO on January 1, 2024.
According to Jason Schreier of Bloomberg, Kotick’s departure signifies a massive change for the gaming industry. Given Kotick’s 33-year tenure at the helm of Activision Blizzard and recent controversies, this change is eagerly anticipated by many employees who are hopeful for a leadership overhaul.
Kotick, who presided over the merger between Activision and Blizzard and has been with the company for more than three decades, had contemplated stepping down in late 2021. The decision was prompted by a lawsuit filed by the state of California, which accused the company of fostering a “frat boy culture” that perpetuated pay disparity and sexual harassment.
In addition to the California lawsuit, a report by The Wall Street Journal alleged that Kotick failed to address numerous abuse allegations within the company while keeping the board of directors uninformed. Activision faced further legal action from shareholders and pressure from state treasurers regarding its handling of the California lawsuit, leading to an employee walkout and demands for Kotick’s resignation.
Despite the mounting criticism in 2021, Kotick remained steadfast. However, Microsoft’s announcement of its acquisition plans for Activision in early 2022 appeared to be a tipping point. Bloomberg and The Wall Street Journal reported that Kotick, who initially resisted the sale, had little leverage with the board to reject Microsoft’s offer. The acquisition price of $95 per share, compared to the original offer of approximately $65 per share, provided Kotick with both a financial windfall and a graceful exit, according to sources cited by The Wall Street Journal.
Responding to the harassment and mismanagement allegations, Kotick stated in an interview with VentureBeat that he did not believe they had adversely affected the company’s stock value. He attributed any setbacks to delays in releasing highly anticipated titles such as Overwatch, Diablo, and the performance of the Call of Duty franchise.
Notably, Kotick’s termination agreement as CEO entitled him to nearly $300 million in the event of a change of control. With Microsoft’s acquisition now finalized, Bloomberg reports that Kotick’s windfall is expected to increase to $375 million.
As Bobby Kotick prepares to depart from his long-standing position as CEO of Activision Blizzard, the gaming industry awaits both the immediate implications of Microsoft’s ownership and the potential long-term shifts in leadership and company culture.