Performance indicators
2021: Revenue from the sale of games - $8.1 billion
History
2023
Microsoft completes acquisition of the company
After almost two years of struggle with global regulators, which threatened to disrupt the deal, Microsoft in October 2023 announced the completion of the acquisition of Activision Blizzard Inc. for $69 billion.
The largest acquisition in the video game industry's history has allowed console maker Xbox to take a stronger stand against rivals, lifting it from fifth to third in the world behind Tencent Holdings Ltd. and Sony Group Corp.
In Britain, blocked the sale of the company in Microsoft. In the EU, the deal is approved
Microsoft's $69 billion takeover of Activision Blizzard Inc. took a second major hit after Britain's antitrust watchdog vetoed the biggest deal in gaming industry history in April 2023, saying it would hurt competition in cloud gaming, which could set the tone for the world's biggest regulators. Microsoft plans to appeal the decision.
Microsoft's deal with Activision in May 2023 received EU approval. While the EU decision offers a glimmer of hope, "it will likely change little" for Microsoft's chances of success in legal disputes with the FTC and CMA, Bloomberg Intelligence analyst Jennifer Rea said.
2022
Microsoft received a refusal from the US antitrust authority to buy Activision Blizzard for $69 billion
In early December 2022, the US Federal Trade Commission blocked a deal to buy Microsoft game developer Activision Blizzard for $69 billion. This is due to the regulator's fears that as a result of the deal, new owners will be able to deny competitors access to game content.
The US Federal Trade Commission (FTC), which is the antitrust authority under the United States government, pointed out that the takeover of the leading and independent gaming studio could lead to damage to competition in the gaming market. Members of the agency's commission voted 3-1 to file the lawsuit.
FTC Competition Director Holly Vedovoy told Reuters that Microsoft has already shown that it can and will deny its content to gaming competitors. This deal is detrimental to consumers, as Microsoft will be able to use Activision blockbuster games such as Call of Duty to poach gamers from competitors.
This FTC decision is a blow to the expansion of Microsoft's video game business, which has become the company's most important consumer division and in the last fiscal year exceeded $16 billion on an annualized basis. For FTC Chairman Lina Khan, a legal scholar who rose to fame after writing an op-ed criticizing Amazon, the lawsuit will be a test of whether her aggressive plan to limit the power of big tech can hold up in court.
Microsoft President Brad Smith said he would fight the FTC. He stressed that he is fully confident in the correctness of his company and will decide the case in court. We continue to believe this deal will expand competition and create more opportunities for gamers and game developers. The company has sought to address competition concerns from the outset, Smith said, including offering previously proposed concessions to the FTC.[1]
The company closed the claim of sexual harassment for $18 million
At the end of March 2022, it became known that Activision Blizzard would pay $18 million in a sexual harassment case, as a result of which many employees left the company in protest. Almost all female employees confirmed that working in the company was akin to working in a hostel, where male employees drank and allowed themselves to expose employees to sexual harassment without any consequences, according to one of the lawsuits.
Initially, Activision Blizzard's response to the allegations was weak, but then the director Bobbie Kotik general said that all charges would be considered. Kotik himself was later accused of involvement in the issue, with 1,500 employees signing a petition to dismiss him as soon as possible. This did not happen, although in September 2021 the company agreed to pay compensation in the amount of $18 million with the US Equal Employment Equality Commission (EEOC) in the United States.
{{quote 'Our goal is to make Activision Blizzard a model for the industry and we will continue to focus on eliminating harassment and discrimination in our workplace,' Bobby Kotick noted in a statement. The court's approval of this settlement is an important step in ensuring that our staff have mechanisms to protect rights if they face any form of prosecution. }} EEOC spokeswoman Nicole Saint-Germain added that Activision Blizzard should ensure this never happens again. The approval of a payment of $18 million means that employees who joined the company after September 1, 2016, if they are eligible, will be able to claim part of these funds.[2]
First Call of Duty annual update cancellation
In February 2022, it was announced that Activision Blizzard will postpone the Call of Duty game, which was scheduled for next year, for the first time in almost two decades the franchise will be left without an annual major release.
The company is delaying the game's release after a recent installment of the series fell short of expectations, leading some executives to think they were introducing new versions too quickly. The decision is not related to Activision's agreement to sell Microsoft for $69 billion, sources say.
The delay will have a huge impact on the video game industry. Every fall, starting in 2005, Activision releases a new, premium game in a lucrative shooter series. The games of the Call of Duty series regularly occupy the top lines of the annual sales charts, and since the creation of the series in 2003, more than 400 million copies have been sold.
More than 30 staff laid off over sex scandal
In mid-January 2022, Activision Blizzard announced the dismissal of over 30 employees and the punishment of more than 40 more people in connection with the consideration of allegations of sexual harassment and other misconduct at the company.
After the inspections were completed, "37 employees resigned from the company, and another 44 received written reprimands, official warnings or other disciplinary sanctions," Activision Blizzard said in a statement.
The creator of the game, Call of Duty, said he was still reviewing employees who allegedly may have broken the law. Activision also denies that the former general director Bobbie Kotik hid a summary of information that was planned to be released "before the winter break."
 | Interim information for our employees is still under review and the company remains committed to continuing to provide periodic updates on its progress, the company said in a statement to Reuters. |  |
The company still disputed a number previously reported in the media about 700 reports of complaints.
| | Although one case is too many, there have not been 700 reports of misconduct, Activision Blizzard noted. | |
Every message received matters, the company said, whether it's a comment about a corporate culture, an incident or proposed improvements. Company spokeswoman Helaine Klasky explained that employee comments included statements on social media, among other things, and the issues raised ranged from what she called "harmless concerns" to "a small number" of potentially serious incidents.
In October 2021, Activision Blizzard said it had laid off more than 20 employees following allegations of sexual harassment and workplace discrimination, while another 20 faced other forms of disciplinary action.[3]
Microsoft bought Activision Blizzard for $68.7 billion
On January 18, 2022, Microsoft announced the acquisition of Activision Blizzard for $68.7 billion (includes cash on the balance sheet of the company being sold). Under the terms of the agreement, shareholders of the game developer will receive $95 for each security they own.
This is 45% more than the company's quotes before the announcement of the deal. On January 18, 2022, Activision Blizzard rose almost 40% amid news of a merger with Microsoft.
The Activision deal was Microsoft's largest acquisition in its history.
There has Bloomberg been no such major Saudi Aramco acquisition since the energy giant Sabic gained control of the chemical maker in a $69 billion deal dollars announced in 2019, according to data.
Once the deal closes, the corporation will become the third-largest game maker in terms of revenue, behind only Tencent and Sony, Microsoft said. The Windows manufacturer will own the rights to major game series such as Warcraft, Diablo, Overwatch, Call of Duty and Candy Crush and Major League Gaming.
As stated in the press release, subsequently her games will be added to the subscription service Game Pass (available to Xbox and PC owners), which will provide him with one of the most attractive and diverse lines of game content. At the same time, Microsoft expects to strengthen its position in the segment of mobile games.
| | We are investing heavily in world-class content, the development of the gaming community and cloud technology to usher in a new era where players and game developers will come first and the games themselves will be safe, inclusive and accessible to all, Microsoft CEO Satya Nadella said. | |
The deal is expected to close during fiscal 2023 after receiving approvals from Activision shareholders and regulators. The deal has already been approved by the boards of both companies.
Activision CEO Bobbie Kotik will remain at the head of the company and will report to Microsoft head of gaming Phil Spencer.[4]
2021
Activision Blizzard CEO gives up 99.9% salary over sex scandal
On October 28, 2021, Activision Blizzard announced the adoption of a new policy regarding harassment and reducing the salary of its general director Robert Kotik to the minimum salary in California. The top manager gave up 99.9% of his salary due to a sex scandal. Read more here.
Payment of $18 million to victims of sexual harassment at work
On September 27, 2021, Activision Blizzard stated that as part of its efforts to create the most supportive, inclusive workplace, it reached an agreement with the U.S. Equal Employment Opportunity Commission (EEOC) to settle claims and further strengthen policies and programs to prevent harassment and workplace discrimination within the company.
Activision Blizzard has pledged to create a $18 million fund to pay compensation and damages to the relevant applicants. Any amounts not used for plaintiffs will be distributed to charities dedicated to promoting women in the video game industry or raising awareness of issues of harassment and gender equality and EEOC-approved equity and inclusivity. The agreement is subject to court approval.
The company also announced an initiative to develop software tools and training programs to improve workplace policies and practices for employers in the technology industry.
| | There is no place for discrimination, harassment or unequal treatment of any kind in our company and I am grateful to the employees who bravely shared their experiences. I am sorry that someone has had to deal with inappropriate behaviour and I remain steadfast in my quest to make Activision Blizzard one of the most inclusive, respected and respectful jobs in the world. We will continue to be vigilant in our commitment to eliminate harassment and discrimination in the workplace. We thank EEOC for its constructive participation in the process of fulfilling our obligations to eliminate inappropriate behavior in the workplace, "said Bobby Kotick, CEO of Activision Blizzard. | |
In addition to the agreed funds, the company takes additional steps, including:
- Modernizing policies, practices and training to further prevent and eliminate harassment and discrimination in the workplace, including the introduction of an expanded performance assessment system with a renewed focus on equal opportunities;
- Ensure ongoing oversight and analysis of training programs, investigation policies, disciplinary system and compliance with company requirements by appointing a third-party equal opportunity consultant whose performance will be regularly communicated to the Board of Directors and the Commission.[5]
Notes
- ↑ F.T.C. Sues to Block Microsoft’s $69 Billion Acquisition of Activision
- ↑ Activision Blizzard will pay $18M to settle sexual harassment lawsuit
- ↑ Activision Blizzard Pushes Out Dozens of Employees Over Workplace Misconduct
- ↑ Microsoft to acquire Activision Blizzard to bring the joy and community of gaming to everyone, across every device
- ↑ Activision Blizzard Commits to Expanded Workplace Initiatives, Reaches Agreement with the EEOC
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