Activision Blizzard is one of the biggest names in the video game industry, not only in its prolificacy but in the amount of money the company operates with. Currently, Activision Blizzard is in the process of being acquired by Microsoft for the staggering sum of $68.7 billion. This is easily the largest single buyout the gaming industry has ever seen. The acquisition easily eclipses the previous largest buyout of Bethesda, again from Microsoft, of $7.5 billion.
It is with these figures in mind that a perspective can be gained on what could be considered a substantial sum of money for a company the size of Activision Blizzard. The company’s CEO Bobby Kotick could receive a payout of up to $22 million if he leaves the company after the Microsoft acquisition and if the company board members deem there to have been an improvement in the workplace culture.
It’s not surprising, then, that there has been some criticism around the figure recently approved for Activision Blizzard to settle a series of sexual abuse allegations against the company. $18 million is the amount agreed upon with the US Equal Employment Opportunity Commission and approved by a judge. The figure was called “woefully inadequate” by the Communications Workers of America, which is the union currently backing Activision Blizzard work staff, although Activision Blizzard may finally get its own workers union once the Microsoft acquisition goes through.
The settlement only applies to the EEOC’s lawsuit, which is the second of two highprofile and opposing lawsuits filed against Activision Blizzard over sexual misconduct. The other lawsuit was filed by California's Department of Fair Employment and Housing, which is yet to settle for any figure. Also, any claimants that apply for part of the $18 million EEOC settlement will be unable to take part in the state's case.
The $18 million won't only go towards the claimants, however. It will also be used to fund harassment and discrimination prevention programs within Activision Blizzard. The whole settlement figure could only have provided 60 claimants the maximum payout, meaning the sum might be stretched quite thin if every claimant applies for it. The $18 million settlement is also $4 million less than what Bobby Kotick could get paid simply for overseeing an improvement in workplace conduct.
It will be difficult for these claimants to know whether to apply for this settlement or hold out and see if the Department of Fair Employment and Housing can get a more substantial figure. California's DFEH does have prior experience in this area, as it got Riot Games to increase its sexual misconduct settlement to $100 million, up from a proposed $10 million.
Source: The Verge