Activision Blizzard CEO Kotick Reportedly Leaving Company After Microsoft Deal Closes

Topline

Activision Blizzard CEO and near-billionaire Bobby Kotick is expected to leave the company once the $68.7 million deal with Microsoft closes, the Wall Street Journal reports, signaling an end to his tenure at the company, which has been riddled with allegations of sexual harassment and workplace misconduct.

CEO of Activision Blizzard, Bobby Kotick, speaks onstage during “Managing Excellence: Getting … [+] Consistently Great Results” at the Vanity Fair New Establishment Summit at Yerba Buena Center for the Arts on October 19, 2016 in San Francisco, California. (Photo by Michael Kovac/Getty Images for Vanity Fair)

Getty Images for Vanity Fair

Key Facts

Kotick is expected to leave the company following the close of the deal, people familiar with the plans told the Journal.

Earlier, Microsoft said in a press release announcing the acquisition Kotick would remain as CEO, but “the Activision Blizzard business will report to Microsoft gaming chief Phil Spencer” once the deal is finalized.

Kotick told the Journal he will “always be available to ensure that we are going to have the very best integration,” but did not address his employment status following the deal closing.

The acquisition, which is the largest in Microsoft’s history and will make Microsoft the third largest gaming company, is expected to close in 2023.

Microsoft did not immediately respond to a request for comment from Forbes.

Big Number

$870 million. That’s Kotick’s approximate net worth, according to Forbes valuations.

Key Background

Activision Blizzard is the country’s largest video game company and behind successful games including Call of Duty, World of Warcraft and Candy Crush. The company has also been facing a reckoning over the past year over allegations of widespread sexual harassment and other workplace misconduct. The California Department of Fair Employment and Housing sued Activision Blizzard in July after a two-year investigation into the company, alleging executives engaged in a “frat boy” culture, and that the company allegedly denied promotions to female employees. The Securities and Exchange Commission also opened a probe into the company over the claims in September. The Journal reported in November Kotick knew of sexual harassment allegations at the company for years, causing shares of the company to plunge and several top executives to resign. Activision spokeswoman Helaine Klasky said in a statement to news organizations following reports Kotick knew of the allegations that he “would not have been informed of every report of misconduct at every Activision Blizzard company, nor would he reasonably be expected to have been updated on all personnel issues.” Activision sometimes “fell short of ensuring that all of our employees’ behavior was consistent with our values and our expectations,” Klasky said.

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