Activision Blizzard CEO Bobby Kotick Set To Leave In December—Here’s What To Know About His Controversies

Topline

Microsoft’s acquisition of video game giant Activision Blizzard — which closed Friday after a protracted approval process — will result in Activision’s CEO Bobby Kotick stepping down in December after a 32-year-tenure marked in recent years by scandals, including allegations of a toxic workplace.

Kotick will step down at the end of 2023. (Photo by Michael Kovac/Getty Images for Vanity Fair)

Getty Images for Vanity Fair

Key Facts

Kotick will depart his role in December after assisting with Microsoft’s acquisition of Activision, a $68.7 billion deal that completed Friday, nearly two years after it was first announced.

Activision and Kotick have been embroiled in controversy since the state of California sued Activision in July 2021, alleging a culture of “constant sexual harassment” that included unwanted comments and physical touching of female employees by male employees, and the suit claimed top executives were aware of or involved with the workplace issues.

Though Kotick reportedly told executives he was unaware of many of the misconduct allegations, a Wall Street Journal report from November, 2021, cited memos, emails and other documents demonstrating Kotick was aware of allegations made in many parts of the company and in some cases did not inform the company’s board of directors, or else minimized the severity of allegations to the board.

Activision said the report presented a “misleading view of Activision Blizzard and our CEO,” and Kotick apologized in 2021 for employees not feeling comfortable reporting concerns.

Activision has also paid several multimillion dollar settlements, including $18 million to the Equal Employment and Opportunity Commission in 2022 to settle a federal sexual harassment lawsuit, and $35 million to the Securities and Exchange Commission in February to settle charges it violated an SEC whistleblower protection rule and failing to maintain adequate disclosure protocols.

Kotick addressed workplace complaints in a 2023 Variety interview, denying Activision has ever had a systemic problem with harassment, blaming the allegations on a “very aggressive labor movement working hard to try and destabilize the company.”

Chief Critics

Kotick and Activision have faced criticism from employees, who have in certain instances demanded Kotick’s resignation. Employees first staged a walkout to protest the company’s workplace culture and sexual harassment allegations in July 2021, one week after the company was sued by California. After the November 2021 Wall Street Journal report, more than 100 employees staged another walkout demanding Kotick be replaced as CEO. Employees also started a petition in November, 2021, calling for Kotick’s resignation, garnering more than 1,800 signatures. The petition stated signatories “no longer have confidence in the leadership of Bobby Kotick as the CEO of Activision Blizzard” because of the reports about his “behaviors and practices in the running of our companies.” Activision shareholders also wrote a letter asking Kotick to resign following the Wall Street Journal story, citing how he was reportedly “aware of many incidents of sexual harassment, sexual assault, and gender discrimination.”

Surprising Fact

Kotick stands to make a big profit from Microsoft’s Activision acquisition. He is reportedly expected to receive about $15 million once he departs the company, without considering the millions of shares he holds in Activision Blizzard.

Key Background

Among some of the allegations made about Activision’s workplace in the California lawsuit were that male employees would arrive to work hungover and have “cube crawls,” getting drunk in the workplace. The suit alleged male employees would also discuss their sexual encounters openly in the workplace and make jokes about rape, and would subject women to unwanted sexual comments and touching. A hotel suite used by World of Warcraft developer Alex Afrasiabi at BlizzCon 2013 was referred to as the “Cosby suite,” reportedly because the suite was filled with alcohol and employees would pose with a portrait of Bill Cosby, who has been publicly accused of sexual assault by more than 60 women. The suit also alleged Afrasiabi would flirt with and touch women at company events. Following the lawsuit, numerous employees came forward with their own experiences, including several who corroborated the “Cosby suite” allegations. Another employee allege they were demoted for reporting sexual harassment and the parents of one former employee sued Activision, alleging the workplace conditions were a “significant factor” that contributed to their daughter’s death by suicide.

Topline

Key Facts

Chief Critics

Surprising Fact

Key Background

Further Reading