Activision CEO Bobby Kotick Will Reportedly Leave the Company After Microsoft Acquisition Closes

Earlier today, Microsoft announced it will buy the video game publisher Activision Blizzard in a $69 billion deal. It's the largest video game acquisition in history and will make Microsoft the world's third-largest gaming company by revenue, behind Tencent and Sony, when and if the deal closes. According to Insider, citing a report from the Wall Street Journal, Activision CEO Bobby Kotick is expected to leave the company once the deal closes. From the report: Those sources said that both Microsoft and Activision have agreed that Kotick "will depart once the deal closes," which could take anywhere from 12 to 18 months. That's in stark contrast to what Microsoft said in its press release on Tuesday morning. "Bobby Kotick will continue to serve as CEO of Activision Blizzard," the release said, "and he and his team will maintain their focus on driving efforts to further strengthen the company's culture and accelerate business growth. Once the deal closes, the Activision Blizzard business will report to Phil Spencer, CEO, Microsoft Gaming."

Kotick reportedly knew for years about a variety of claims of sexual harassment and rape at his company. An investigation by the Wall Street Journal detailed several specific examples of harassment and rape at Activision. Kotick was not only aware of those claims but, in a least one instance, reportedly intervened to keep a male staffer who was accused of sexual harassment despite the company's human resources department recommending he be fired.

Golden Parachute

[CodeInspired]

I would too.

Re:

[real_nickname]

I would have left long ago. He had generational wealth long ago before this sale.

Re:

[gweihir]

There is a class of people that can never get enough...

$69 billion deal

[Kitkoan]

Nice

Re:

[Kitkoan]

It's give and take...

Damn

[Kelxin]

That dude just got a get out of jail free card.

Re: Damn

[Kelxin]

Of course you have to post as an AC when you don't understand. He was stuck in a slowly sinking ship, and just got a major bonus getting away from it so he doesn't have to wait for years for the pay out. Also for the sexual harassment, the business is really on the hook. If they want to go after him personally it would take years of lawsuits to get anywhere.

Re:

[bloodhawk]

It probably releases a large golden Parachute for him, but I seriously doubt he will escape any of the sexual harassment issues, they are items that will hound him for years to come. Still must be nice to be such a fuckup like him and get paid millions for it.

Golden Shower Parachute

[Ownz]

This is such bullshit. Kotick and all his filthy executive will get insane payouts and retire in luxury. What do the victims get? How about QA? The QA Department will be shredded and forced to be in the M$ bullshit contractor ecosystem, or just get outsourced to India. Well done. I hope some brave soul has the balls to play "Rape Me" at their next town hall meeting.

Re: Golden Shower Parachute

[NoSleepDemon]

Savage! But I have to say I cracked a smile.

Re:

[Anonymous Coward]

This is such bullshit. Kotick and all his filthy executive will get insane payouts and retire in luxury. What do the victims get?

Get woke, go broke. Or spend years building equity, sell high, and retire in luxury.

Re:

[phantomfive]

The least important person there [penny-arcade.com].

Re:

[gweihir]

MS still has QA? I thought they got rid of that entirely?

Re:

[sheph]

They switched to customer sourced QA years ago. Saved them a lot of money. Which is how they found $69B to ruin Blizzard even more than Activision already has.

Re:

[account_deleted]

Comment removed based on user account deletion

Sony is out also

[quonset]

I realize there are many on here who despise Sony for one reason or another, but you may now have a new reason [imgur.com]. Or not, depending on your point of view.

Re:

[BroccoliKing]

I realize there are many on here who despise Sony for one reason or another, but you may now have a new reason [imgur.com]. Or not, depending on your point of view.

That is a parody account.

Re:

[quonset]

I realize there are many on here who despise Sony for one reason or another, but you may now have a new reason [imgur.com]. Or not, depending on your point of view.

That is a parody account.

You don't say. What tipped you off? /s

Re:

[Truth_Quark]

Off topic

Makes sense.

[Truth_Quark]

Kotick's got to be a massive liability.

Both for staffing and culture and legally.

Gross

[HalAtWork]

They're becoming the Disney of the gaming industry

Re:

[BeepBoopBeep]

You do know that MSFT owns its own gaming platform + gaming studio? Its not like they were peanuts in this space.

Re:Gross

[ThosLives]

Yeah, I don't understand why the regulators would even consider allowing this through... way too much consolidation of power in the space.

One can only hope that the efforts implied by the earlier article about revisions to guidelines for approving M&A will have some bearing on the matter... but I am not hopeful.

Re:

[AmiMoJo]

This will only make Microsoft the third biggest video game publisher by revenue, behind Sony and Tencent. So I guess they will allow it because the other guys are already worse.

huh?

[bloodhawk]

how is that in stark contrast to what they said? He is staying on for 12-18 months to close the deal so it seems exactly inline with what they said.

Re:huh?

[BeepBoopBeep]

You are correct, everything is inline. Obviously the reporter(s) are not familiar with how acquisitions work. The transaction date, known as Day 0 in M&A world marks the transfer of ownership and governance to the entity that acquired it. The announcement today does not mark Day 0, but a legal handshake to acquire. There will be many months of legal/regulatory approvals before $$ is transacted to acquire Activision (Day 0). The current CEO will remain until Day 0 but will leave immediately after per the terms of the acquisition.

Re:

[tokul]

> inline with what they said.

We hope he won't grow the third horn in those 12-18 months, they said.

Thanks for the golden parachute!

[HalAtWork]

Bobby Kotick is loving this exit

Re:

[CaptainLugnuts]

All Microsoft has to do is find some behavior that violates his contract and then fire his ass fro being the asshole he is.

And I have met the man, he's a total shit weasel.

Kotick not the actual problem

[DrMrLordX]

The worst thing Bobby Kotick did was nothing. The vast majority of Activision/Blizzard's problems come from Blizzard itself, even in the years from before Activision's acquisition of the property. It's not clear how far back the claims of sexual activity and harassment go in Blizzard's offices (not to speak of Blizzard North, which was closed years ago and may not have had any problems at all of which we're aware). Regardless, Activision is mostly a publisher now that works with a number of other developers, with Blizzard probably being their biggest in-house developer remaining. And Blizzard is responsible for most of the crap going on at Activision Blizzard now. Except for the QA crap which I guess was not technically at Activision at all, but instead at Raven?

Re:

[AmiMoJo]

Isn't it his job to be on top of this stuff?

Strengthen the company's culture?

[backslashdot]

He's going to strengthen the company's culture in what way? By hiring Ghislane Maxwell as VP of HR?

Re:

[gweihir]

That would at least send a strong message. And to be fair, all adult female employees would be pretty safe after that.

Re:

[Required Snark]

I know that Slashdot is a haven for dumbshit bro asswipes, but your comment is so vile you need to be called out for your pig ignorance. Maxwell was described by multiple victims as having participated in sex with Epstein while he abused them, as well as being accused of rape herself.

Your assumptions about this case, your clear lack of any factual information, and the glib nature of your response make it obvious that you accept, and even identify with sexual predators. I wonder if the contents of your elec

Re:

[gweihir]

Sarcasm-challenged individual detected. Also pretty dumb and violent. You probably need help.

This buyout was long overdue

[legojenn]

Activision has been on cruise control since the release of Pitfall! for the Atari 2600 in 1982. Hopefully this buyout will halt their 40-year slide to irrelevance.

So What About My WoW Account?

[Toad-san]

Is it too late to hit up Bobby for a free lifetime subscription?