Today, it was revealed that Activision Blizzard will be acquired by Microsoft for $68.7 billion. But there will be some separations.
Microsoft today announced that it will buy the world-famous gaming company Activision Blizzard. But after the integration process led by the company’s CEO Satya Nadella ended, activision was told there would be an unexpected breakup.
After Microsoft sale, Activision CEO Bobby Kotick leaves
Microsoft, which is expected to be one of the profitable parties following the sale, will have a wide range of intellectual property and game development resources. It will be able to integrate large game studios such as Blizzard Entertainment and Treyarch, as well as game series such as Call of Duty, World of Warcraft and Candy Crush.
In addition, Activision is already known to have more than 10,000 employees. Therefore, they will now be under the umbrella of Microsoft. But it seems there are some who don’t agree to this merger. Among them is Bobby Kotick, the company’s former CEO.
According to sources who spoke with the Wall Street Journal, the separation was not disclosed solely due to formality after the signing of the agreement. But once the official acquisition is finalized, Kotick will tender his resignation.
But it also claims that under the deal struck by both Microsoft and Activision, Kotick will go through a separation process that could take 12 to 18 months. So this breakup won’t happen the next day as expected.
Confidential sources who made the statement said:
Bobby Kotick will continue to serve as CEO of Activision Blizzard. The Ove team will continue to focus on further strengthening the company’s culture and continuing its efforts to accelerate business growth. When the deal closes, Activision Blizzard will report directly to Microsoft Gaming CEO Phil Spencer.
However, Kotick was said to have known about various allegations of sexual harassment and rape at his company for years. A Wall Street Journal investigation revealed several specific examples of harassment and rape at Activision.
According to the statement, Kotick was not only aware of these allegations. In at least one known case, it also emerged that the company intervened to keep a male employee accused of sexual harassment, despite the company’s human resources department recommending the firing of a male employee accused of sexual harassment.
In an email to staff, Xbox president Phil Spencer said xbox was evaluating all aspects of its relationship with Activision Blizzard and making ongoing proactive adjustments. Microsoft also reportedly addressed and highlighted issues at Activision during an investor phone call on Tuesday.
Microsoft CEO Satya Nadella, who made the latest announcement, said:
We believe it is critical that Activision Blizzard continues its renewed cultural commitments. We support activision blizzard’s work and objectives. We also know that after closing, we will have important work to do to continue building a culture where everyone can do their best.