Topline
Activision Blizzard CEO Bobby Kotick minimized toxic workforce claims that have surrounded his company in prior years in an interview with Variety published Wednesday—in his most outspoken comments about the issues to date—claiming his company did not ever have a “systemic issue with harassment” despite the fact it has paid out millions of dollars in settlements to resolve employee complaints.
Bobby Kotick, CEO of Activision Blizzard, pictured at the Allen & Company Sun Valley Conference on … [+]
Key Facts
Kotick defended Activision Blizzard in the interview, placing blame for most of the company’s negative optics on a labor movement directed at the company that he said worked hard “to try and destabilize the company.”
The CEO said he believes state and federal investigations into harassment and gender discrimination claims have been influenced by labor organizers—though he did not identify the organizers or state how they are supposedly influencing the probes.
Kotick argued Activision Blizzard has had “a relatively low level of harassment and assault complaints” as the company has navigated multiple sexual harassment allegations and staff walkouts.
A transparency report will be released by Activision Blizzard providing, “exculpatory data from outside entities,” according to Kotick, who did not mention a publication date.
Key Background
Activision Blizzard has paid two settlements regarding workplace misconduct and sexual harassment, though it’s stopped short of admitting wrongdoing in addressing the claims. The company agreed to pay the Equal Employment and Opportunity Commission $18 million last year resolving a federal sexual harassment lawsuit. This year, it paid the Securities and Exchange Commission $35 million to settle claims over failure to maintain adequate disclosure protocols and violating an SEC whistleblower protection rule. In addition to legal blowback, Activision Blizzard has also experienced instances of pushback from employees—the most notable of which included walkouts in protest of Kotick following a Wall Street Journal article that reported the CEO knew about sexual misconduct claims for years and did not report some of them to board members, leading to shares of the company closing down more than 6% after the story was published. The company responded to the report, saying it represented a “misleading view” of Activision Blizzard and Kotick. Kotick apologized in 2021 for employees not feeling comfortable about reporting concerns.
What To Watch For
Activision Blizzard is still pursuing an acquisition at the hands of Microsoft after more than a year of lobbying regulators to approve the $69 billion deal. Experts have said Microsoft will inherit Activision Blizzard’s sexual harassment lawsuits when the deal closes.
Big Number
$7.53 Billion. That was Activision Blizzard’s annual revenue for 2022.
Further Reading
Bobby Kotick Breaks His Silence: Embattled Activision CEO Addresses Toxic Workforce Claims as Microsoft Deal Hangs in Balance (Variety)
Activision Blizzard Will Pay SEC $35 Million To Settle Claims (Forbes)
Source: https://www.forbes.com/sites/antoniopequenoiv/2023/05/31/activision-blizzard-ceo-brushes-off-companys-harassment-issues-argues-there-is-no-systemic-problem/