Microsoft's recent acquisition of Activision Blizzard for nearly a whopping 69 billion dollars has led to a new development within the management of the acquired company. Bobby Kotick, Activision Blizzard's CEO, is set to continue in his role till the end of 2023. This decision was revealed through emails from Phil Spencer, CEO of Microsoft Gaming and head of Xbox, as well as from Kotick himself, sent to all employees of Activision Blizzard.
Kotick has expressed commitment to aiding the transition of his company under this new acquisition into the Xbox first-party umbrella. He will be directly reporting to Spencer, highlighting the importance of his role in navigating through this period of change. The aim of his continued leadership is to facilitate a smooth integration of both teams and players.
Spencer shared his excitement in welcoming Activision Blizzard employees as colleagues and teammates. He agreed on Kotick continuing his role for ensuring a comprehensive integration without roadblocks. The details of the new organizational structure under Microsoft are to be shared in the coming months, as hinted by Spencer.
Ever since Microsoft declared the intention to acquire Activision Blizzard about two years ago, business observers speculated that Kotick might tap into various "golden parachute" options at his disposal. As per Axios's report last year, a $15 million payout awaits Kotick in case of termination following the acquisition. He could also secure stock worth up to $22 million if Activision Blizzard's board acknowledged improvements in the company's culture.
This refers to the controversy in 2021, when Activision Blizzard was revealed to have a history of employee misconduct and sexual harassment. Kotick was reported to have known about these allegations, which led to several employees demanding his resignation.
Besides these possibilities, Kotick, as of February 2022, holds 6.5 million Activision Blizzard shares priced at $619 million at Microsoft's buying price, giving him an option to sell.
Despite these available exit strategies, Kotick's decision to stay on as CEO suggests that his departure next year will likely be amicable and on his terms. As Activision Blizzard transitions under the Microsoft ownership, the industry eagerly waits to see if Kotick's leadership would indeed bring about the desired seamless integration.
The Microsoft – Activision Blizzard deal marks a significant milestone in the gaming industry. The phase of transition under Kotick's leadership will be worth observing for its management strategies and impact on both companies' futures.
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