Microsoft recently announced its acquisition of Activision Blizzard, which caused speculation about the future of both companies. The purchase will set Microsoft back a whopping $68.7 billion, and Activision Blizzard CEO Bobby Kotick stands to benefit greatly from the transaction.
Microsoft broke gaming industry acquisition records yesterday after it stated that it would be acquiring Activision Blizzard for nearly $70 billion. Included with the statements made by executives involved were mentions of the metaverse, expanding the Game Pass Ultimate offerings, and improving cloud gaming to bring Xbox titles to a variety of devices. Many fans wondered what would happen with Bobby Kotick, and his role at Activision Blizzard beyond the acquisition. Currently, he stands to gain financially should he be ousted as CEO.
According to an Activision filing with the US Securities and Exchange Commission, if Bobby Kotick is terminated as CEO of Activision Blizzard within twelve months of a change in control, such as the upcoming Microsoft one, Kotick will receive payments and benefits totaling $292,970,341. Kotick maintains a significant chunk of Activision Blizzard stock, with around 3,908,698 shares as of August 7, 2021, which he could sell as part of Microsoft's agreement to buy the company at $95 a share for around $370 million.But many Activision Blizzard shareholders have called on him to resign, which would forgo the termination clause gains.
Kotick's contract filed with the US SEC specifies that the CEO could receive the $292,970,341 package for being terminated "without cause or for good reason" during the twelve months following the finalization of the deal. Fans can expect this to happen next year, suggesting Activision Blizzard might see a departure from the CEO in the following year. Activision Blizzard's CEO recently asked for a reduction in annual compensation due to the allegations of abuse and harassment at Activision Blizzard and a buyout from the company may counter losses he's incurred since then.
One of the many reasons Activision Blizzard had such a high price tag is the number of popular franchises attached to the publisher such as Call of Duty, Crash Bandicoot, Overwatch, and Spyro. Despite taking dips in share value recently due to an ongoing lawsuit from the state of California regarding inappropriate working conditions, the company has maintained a high evaluation through regularly impressive metrics. Kotick is expected to remain CEO of Activision Blizzard into 2023 and there are currently no public plans to release him once Microsoft takes control.
Source: Video Games Chronicle