Activision Blizzard CEO Bobby Kotick has come up with a plan to extract himself from the company. The payout would be worth around $300M and is likely in response to increased pressure from activist investors who have been demanding changes at Activision, which was recently acquired by ATVI for $26B.
Microsoft is making a major move by acquiring Activision Blizzard. This follows a difficult period for the gaming company’s leadership.
Jason Schreier provided details regarding this huge deal as the said report came from the Wallstreet Journal. In his tweet, he stated that the WSJ revealed that Microsoft would purchase Activision Blizzard, which was described as the troubled publisher behind “Call of Duty” and “World of Warcraft.” Schreier described Microsoft’s decision as a seismic gaming deal, since it is expected to create a huge shift in power within the gaming industry.
BREAKING NEWS: According to the Wall Street Journal, Microsoft is purchasing Activision Blizzard, the troubled publisher behind Call of Duty and World of Warcraft. Activision Blizzard has been in turmoil for the last year, after many allegations of sexual misconduct and discrimination. A game-changing transaction
— January 18, 2022, Jason Schreier (@jasonschreier)
For the uninitiated, Dexerto notes that the game publisher has been engulfed in scandal over the last year as a result of many claims of discrimination and sexual misconduct.
Microsoft even acknowledged it on their website in a blog post. According to Microsoft’s statement, the company intends to buy Activision Blizzard, which would “accelerate the expansion of Microsoft’s gaming business across mobile, PC, console, and cloud and offer building blocks for the metaverse.”
The purchase of Activision Blizzard has been completed.
Bobby Kotick, CEO of Activision Blizzard, also announced the impending purchase, which would be finalized in June 2023.
According to Microsoft, by the time the deal is completed, it will be the third-largest gaming firm in terms of revenue, after only Tencent and Sony. It went on to say that the anticipated acquisition would include “Call of Duty,” “Warcraft,” “Diablo,” “Overwatch,” and “Candy Crush,” among other classic Activision Blizzard and King studios titles.
Kotick is worth $300 million.
According to reports, Microsoft will purchase Activision’s vast portfolio of videogame development companies and titles in June of next year.
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Kotick informed staff in an internal email that he intends to keep his job “for the foreseeable future.” However, sources said that if the deal was completed, the CEO would step down. This is in addition to the possibility of a $300 million payoff if he is expelled out.
Activision is a gaming company. Such transactions, according to Blizzard’s CEO, might take a long time to execute.
Furthermore, Kotick added that the game publishers would operate independently until they get the required regulatory clearances as well as other normal closing conditions (which will be around Microsoft’s fiscal 2023 year, which ends on June 30 next year).
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