Current Activision Blizzard CEO Bobby Kotick is reportedly expected to resign from his position following Microsoft’s takeover of the Call of Duty publisher. The deal is expected to be finalized in June 2023, and by then, the Activision Blizzard business will report to Xbox head Phil Spencer. Until then, Kotick will remain CEO.
As reported by industry analyst Daniel Ahmad, Kotick will retain his position as Activision Blizzard’s CEO until the deal closes next year. Spencer will take the reigns thereafter, with Kotick expected to leave his duties. Many wondered why Kotick would exit the company at all, but as it turns out, he will leave with quite a hefty paycheck.
In the event that a change of control happens in the company (which will happen with Spencer’s intervention), Activision Blizzard will have to pay out Kotick following his termination. This will result in Kotick leaving with a sum of around $300 million. On the bright side, leadership will be handed over to Spencer from then on, which may put Activision Blizzard on a better trajectory.
This also comes in the wake of Activision Blizzard’s numerous lawsuits levelled against the company when reports of sexual misconduct and harassment surfaced last year. The CEO was mainly held responsible by employees, who criticized his poor leadership and underwhelming response to the surfacing allegations. Xbox has promised to bring about change within Activision Blizzard once the deal closes, and it seems like terminating Kotick is a big step forward.
Recently, 40 employees at Activision Blizzard were forced out of the company – many of them being alleged perpetrators. On the same day, Xbox announced their historical acquisition of the publisher, which is no coincidence. Until June 2023, Kotick will remain CEO of the company.
Source: Daniel Ahmad