The integration of Activision-Blizzard-King within Microsoft continues and, this time, it is directly at the top of the pyramid that things are moving with the announcement of the departure of the highly contested Bobby Kotick.
We’re not going to tell you the whole story again. In January 2022, Microsoft announced that it had reached an agreement to acquire Activision Blizzard King, the colossus behind which we find Call of Duty, World of Warcraft and Candy Crush. Worth $68.7 billion, the operation took 20 months to conclude, with regulators trying to block the takeover or demanding very specific commitments.
For many, the validation of the takeover heralded the departure of Bobby Kotick, a sulphurous CEO at the heart of numerous scandals linked to a toxic corporate culture including accusations of harassment, crunching, and even sexual assault.
Goodbye Bobby, hello Matt
In a press release following the formalization of the acquisition of ABK by Microsoft, Bobby Kotick indicated that he would support the transition and that he would be there at least until the end of the year. In a recent email addressed to all Activision Blizzard King employees, the 60-year-old CEO formalized his departure after 32 years of service. As of December 29, Bobby Kotick will no longer be the boss of the company and power will pass to Matt Booty, who already supervises Bethesda Studios (Starfield) but also Xbox Game Studios. He will be supported by Jill Braff, who becomes head of Bethesda studios.
It is therefore to him that Tjodolf Sommestad, director of King, Rob Kotish (Activision) and Mike Ybarra, president of Blizzard, will report. For his part, Matt Booty will continue to be managed by Phil Spencer, big man of the Xbox brand and gaming in general at Microsoft. According to learned calculations carried out by Oscar Lemaire on the Ludostrie site, Bobby Kotick will not leave empty-handed since the sale of his shares to Microsoft should allow him to add around 400 million dollars to his bank account, in addition of the 727 million collected between 2008 and 2022.
“ I cannot adequately express the pride I feel in the people who continue to contribute to our success and in all those who have helped me during the 32 years that I have spent at the head of this business. […] Phil Spencer has enjoyed the magic of ABK for decades. […] He is passionate about our games and the people who create them. His ambition is audacious. As we begin an exciting new chapter, you couldn’t be in better hands », assures the future ex-CEO, who cleverly hides all the setbacks of the company over the last two years and the ongoing unionization.
Successes and scandals
Under the supervision of Bobby Kotick, Activision became a video game giant. By purchasing Blizzard in 2008 and King in 2015, he found himself at the head of an empire that generates more than $8 billion each year. Beyond the financial aspect, ABK offers dozens of the most powerful licenses in the sector. To buy the company, Microsoft had to reach an agreement with PlayStation to guarantee that Call of Duty would not become an Xbox exclusive in the next ten years.
But since 2021, Activision-Blizzard-King has also seen several complaints and strike action. The company has been accused of allowing a toxic corporate culture to grow and covering up the affairs. Bobby Kotick was also directly targeted. From 2022 to December 2023, ABK paid $107.8 million to settle various discrimination and sexual harassment claims.
The most recent agreement was reached a few days ago with the California Department of Civil Rights. He ends the current complaint with a payment of 54.8 million dollars, of which 45.7 million will be dedicated to a compensation fund. Finally, note that several other ABK executives have announced their departure, including Lulu Mersevey, communications director. As for the unions created before the takeover, their creation has been validated, and they should continue their work under the leadership of Microsoft, the company having assured that it would recognize them.
Source : The Verge
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