Activision’s CEO, Bobby Kotick, talks about all things Activision in a new interview, including addressing the company’s harassment complaints, the Microsoft merger, and more.
First and foremost, Kotick talks about how Microsoft is the perfect fit for Activision stating that “Microsoft is by far the best place for us (Activision) to be.” Kotick adds, “I like the company, I like the culture. I’m really scared about the economy — compensation for talent has been ratcheting up in ways that are complex for us to deal with. So this deal made a lot of sense.”
However, Kotick says, if the deal does not go through, Activision will be just fine as the company has $12.6 billion in cash, and an additional $3 billion that Microsoft will have to pay as a breakup fee, which is a lot of money to fall back on. Kotick says that he has “a great company.” He adds, “We have an enormous amount of momentum, and we have an extraordinary balance sheet. And we can continue to be successful alone like we have been for the last 30 years. But it’ll be great if the deal goes through because I think it’s the right thing for our industry.”
The uncertainty about the deal going through by Kotick comes from the antitrust regulators in the UK and US suing to block the merger. As per the initial draft, Microsoft and Activision require approvals from both these jurisdictions before they can go ahead and close the merger.
Although the CMA and FTC have blocked the merger, Microsoft is determined to close the deal. It has filed an appeal in the UK and is legally battling the FTC later this year so they can overturn their decision. But, it still seems like a long way to go before the deal closes, thus explaining why Kotick might be a little unconvinced.
Moreover, Kotick addresses the complaints about harassment and violence in Activision Blizzard King. Kotick says that the company has “had every possible form of investigation done, and did not have a systemic issue with harassment — ever. But what we did have was a very aggressive labor movement working hard to try and destabilize the company.”
Kotick defends his stance by saying that he wouldn’t be sitting here if any of the “inflammatory narrative was truthful. No board of directors in a noncontrolled company is going to allow the CEO of an enterprise to stay running the enterprise if those things were truthful,” he says after pointing out he owns less than 5% of Activision shares and does not control the company through voting rights.
It seems like things with Activision and the labor movements (especially the Communications Workers of America) have cooled down in recent months. The CEO touches upon this by saying that they have “worked thoughtfully and productively with the CWA, and we’ve engaged in a dialogue that will be beneficial for our people, the union and the company.”
Source: Variety