Microsoft recently announced its plans to buy game publishing giants Activision Blizzard for $69 Billion, easily the largest buyout price tag the games industry has ever seen. This follows a trend of massive gaming industry acquisitions happening recently from the two major console manufacturers Microsoft and Sony.
Activision Blizzard had come under fire in the months leading up to the buyout announcement, after a series of allegations came out over misconduct throughout the video game publisher. There have been many people calling for the CEO of Activision Blizzard, Bobby Kotick, to resign due to these accusations, and it has been highly speculated that Microsoft will want to do some major reshuffling to the company after the acquisition.
It has been revealed however, that if Bobby Kotick is removed as CEO by Microsoft without cause before his current contract expiration date of March 2023, he will receive a payout of $15 million. Referred to as a “golden parachute” in the business, it is not uncommon for CEOs of companies the size of Activision Blizzard to get massive payouts if they are forced to leave under the wake of controversy.
Kotick’s payout could also increase up to $22 million in stock if the company’s board members agree they’ve seen an improvement in the company work culture around the treatment of its female and non-binary employees. It’s also notable that regardless of if whether he is removed from the CEO position, Kotick owns 6.5 million shares in Activision Blizzard, worth around $619 million at Microsoft’s acquisition price.
It has also been revealed that Microsoft’s talks to acquire Activision Blizzard first began only a few days after The Wall Street Journal expose that claimed CEO Kotick knew for years about sexual misconduct at his company. Also, while the Microsoft buyout continues to go ahead, Activision Blizzard isn't allowed to make any collective agreements with its employees that might affect the company’s structure. This includes allowing the employees to unionize, which many have been calling for.
With all the controversy surrounding Bobby Kotick in the recent months, it is highly likely that Microsoft plans to remove him from Activision Blizzard’s CEO position almost immediately after the acquisition goes through. Most likely Kotick will graciously go along with this transition, and its hefty payout, to show to its fans and players that Microsoft is taking the alleged culture at Activision Blizzard seriously. But it would take well over $15 million to completely remove Kotick’s influence at the company, as a leading shareholder.
Source: AXIOS
