Activision Blizzard CEO Bobby Kotick
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Activision Blizzard’s embattled CEO Bobby Kotick is likely to step down from his current role once Microsoft
‘s pending acquisition of the company is completed, according to The Wall Street Journal, which cited “people familiar with those plans.”
In announcing the proposed $68.7 billion all-cash transaction, Microsoft said current Activision Blizzard CEO Bobby Kotick will “continue to serve as CEO,” and that he and his team will “maintain their focus on driving efforts to further strengthen the company’s culture and accelerate business growth.”
Microsoft also said that once the deal closes, the Activision Blizzard business will report to Microsoft Gaming CEO Phil Spencer. The press release didn’t address whether Kotick would stay on after the deal closed, and Microsoft declined to comment on the Journal’s report about Kotick.
The confusion around Kotick’s ultimate role adds one more question to a merger that is sure to get significant scrutiny in the months to come.
Last summer, the state of California filed a lawsuit against Activision, alleging gender bias issues, including that women are paid less than men for similar work. The suit alleges the company has a “frat boy workplace culture” and called it “a breeding ground for harassment and discrimination against women.” Activision is fighting the suit, and has said it offers “a supportive, diverse and inclusive workplace for our people.”
On Monday, The Wall Street Journal reported that Activision has pushed out 37 staffers and disciplined 44 others over sexual harassment allegations.
In November, Spencer wrote a letter to Microsoft employees saying the company was re-evaluating its relationship with Activision, amid allegations that Kotick mishandled reports of sexual misconduct within the company. Microsoft is a distributor of Activision games via its Xbox platform.
According to Bloomberg, Spencer wrote that Microsoft’s gaming leadership team was “disturbed and deeply troubled by the horrific events and actions” at Activision, adding “This type of behavior has no place in our industry.”
In an interview last week with New York Times columnist and podcaster Kara Swisher, Spencer made similar comments about the allegations of sexual harassment at Activision. “I’m saddened and sickened when I hear about workplace environments that cause such distress and destruction of individuals and teams,” he said.
Asked about his comments that the company was “evaluating” its relationship with Activision, Spencer said, “We have changed how we do certain things with them, and they’re aware of that. But I also—this isn’t about, for us as Xbox, virtue-shaming other companies. Xbox’s history is not spotless.”
That’s a reference to a 2016 incident in which Microsoft hired women to dance on platforms at a game developers event. Spencer apologized for the event. “That was a painful moment in our history of Xbox,” Spencer told Swisher.
Last week, Microsoft’s board said it would review the company’s own sexual harassment and gender discrimination policies. The company hired the law firm Arent Fox to conduct the review. The board move followed passage at the company’s latest annual meeting of a resolution demanding greater disclosure on handling of sexual harassment matters.
“Our culture remains our number one priority and the entire Board appreciates the critical importance of a safe and inclusive environment for all Microsoft employees,” Microsoft CEO Satya Nadella said in a statement last week announcing the review.
Write to Eric J. Savitz at [email protected]
