On November 16, 2021, a report was published claiming that Activision CEO Bobby Kotick was well aware of harassment taking place within his company. It also alleges that he himself abused women, both on and off the job. Now, new documents reveal that three days later, Xbox head Phil Spencer called Kotick and began negotiations that eventually led to a massive $68 billion acquisition.
As discovered by CNBCThese new details about the Activision/Microsoft deal come from a SEC regulatory filings released on Friday. In it, we get a full and detailed timeline of how and when the negotiations between Microsoft and Activision began.
As mentioned, on November 16 a bomb explosion Bloomberg report It was announced that Kotick was aware of allegations of sexual harassment at the company and that he himself was charged with employee abuse. Following that report, Activision’s stock price fell by nearly $10 .. On November 18, Spencer emailed employees at Microsoft and Xbox that he “deeply troubled and worried“Of reports and stories coming soon from Activision Blizzard. He also announced he was reviewing Xbox and Activision’s relationship.
On November 19, the very next day, Spencer called Kotick and followed Filing with the SEC, in another conversation about the matter, Spencer told the CEO that “Microsoft is interested in discussing strategic opportunities” between the two companies. Then he asked if Kotick and himself could talk Microsoft CEO Satya Nadella The Next Day.
On November 20, Nadella made it clear: Microsoft wants to acquire Activision.
Less than eight weeks later, following amazingly quick negotiations between the two companies, Microsoft and Activision announced their acquisition on January 18, 2021. It’s a myth that this historic mega-deal combined how quickly each other compares to the much smaller $3.6 billion Bungie/Sony deal that was announced on January 31. According to Bungie and Sony, that took “months” to figure out.
The reason for this speed could be due to the feeding frenzy that began in November. Revealed in the SEC filing is news that at least four other companies are also interested in buying Activision. All of the companies are not named in the document, but apparently, one wants to acquire Blizzard. However, the Activision board believes this will be too difficult to do. Microsoft had to act quickly and forcefully to ensure results were achieved.
Kotaku contacted Activision and Microsoft regarding the progress and details disclosed in the filing with the SEC.
The filing also shows that, whatever happens, Kotick will leave with a lot of money. If he leaves, What is supposed to happen as soon as the deal is closed?, he could sell all of his stock in Activision and walk away for $410,142,075 based on the $95 per share that Microsoft intends to pay. And if he decides to stay, but Microsoft pushes him out anyway, Kotick still only gets $14,592,302. The slime-rich people don’t even get shot like normal people.
This new, detailed timeline is opening up many surprises and seems to confirm reports that Microsoft has indeed swooped in on Activision stock after the Bloomberg reported in November. It looks like Phil Spencer and the others at Xbox may have been really disturbed by the reports from Activisionbut not also anxious or disgusted to still see an opportunity to acquire the company.
https://kotaku.com/activision-microsoft-kotick-spencer-ceo-deal-harassment-1848567540 Microsoft begins activation agreement 3 days after harassment report