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Tag: Bobby Kotick

  • Activision Blizzard Will Pay $35M Fine Over Multiple Violations

    Activision Blizzard Will Pay $35M Fine Over Multiple Violations

    Activision Blizzard has reached an agreement with the SEC to pay a $35 million fine over disclosure controls and whistleblower violations.

    Activision Blizzard faced multiple accusations of sexual harassment and misconduct that went on for some time, with CEO Bobby Kotick accused of knowing about the issues, but choosing to ignore them. The SEC also accused the company of lacking the necessary disclosure controls to properly ascertain the scope of the issue.

    According to the SEC’s order, between 2018 and 2021, Activision Blizzard was aware that its ability to attract, retain, and motivate employees was a particularly important risk in its business, but it lacked controls and procedures among its separate business units to collect and analyze employee complaints of workplace misconduct. As a result, the company’s management lacked sufficient information to understand the volume and substance of employee complaints about workplace misconduct and did not assess whether any material issues existed that would have required public disclosure.

    In addition to its lack of necessary disclosure controls, Activision Blizzard is accused of violating whistleblower protection laws over a period of more than five years.

    Separately, the SEC’s order finds that, between 2016 and 2021, Activision Blizzard executed separation agreements in the ordinary course of its business that violated a Commission whistleblower protection rule by requiring former employees to provide notice to the company if they received a request for information from the Commission’s staff.

    As part of its settlement, the company has agreed to pay a $35 million fine.

    “The SEC’s order finds that Activision Blizzard failed to implement necessary controls to collect and review employee complaints about workplace misconduct, which left it without the means to determine whether larger issues existed that needed to be disclosed to investors,” said Jason Burt, Director of the SEC’s Denver Regional Office. “Moreover, taking action to impede former employees from communicating directly with the Commission staff about a possible securities law violation is not only bad corporate governance, it is illegal.”

  • Meta Investigating Sandberg For Allegedly Using Company Resources to Help Activision’s CEO

    Meta Investigating Sandberg For Allegedly Using Company Resources to Help Activision’s CEO

    Sheryl Sandberg has been a staple at Facebook and Meta for years, but the executive is now accused of improperly using company resources to help Activision CEO Bobby Kotick.

    Kotick has been under fire for allegedly knowing about, and turning a blind eye to, sexual harassment and discrimination issues within Activision. According to The Wall Street Journal, Sandberg was dating Kotick when reporters were investigating him. During this time, Sandberg allegedly worked with Kotick to pressure Daily Mail reporters to drop their investigation.

    Sandberg, who serves as Meta’s Chief Operating Officer, worked with a team comprised of Facebook and Activision employees, as well as paid outside consultants. In both 2016 and 2019, Sandberg contacted Daily Mail to dispute elements of their reporting.

    While many do not believe Sandberg directly threatened Daily Mail in either interaction, some believe any contact by the executive could be viewed as a threat, given the power Facebook wields over the news industry and the traffic it relies on.

    A spokesperson for Meta gave the following statement to WSJ:

    “Sheryl Sandberg never threatened the MailOnline’s business relationship with Facebook in order to influence an editorial decision.”

    Despite the statement, the company is clearly concerned of some impropriety, and is now investigating whether Sandberg crossed a line.

  • Senators Ask the FTC to Investigate Microsoft’s Activision Acquisition

    Senators Ask the FTC to Investigate Microsoft’s Activision Acquisition

    US Senators are asking the Federal Trade Commission to investigate the Microsoft/Activision deal, over concerns regarding Activision’s past scandals.

    Microsoft announced in January, 2022 that it was purchasing Activision Blizzard for $68.7 billion. Microsoft has been buying gaming studios, both for their immediate benefit, as well as their potential to help the company as it competes in the burgeoning metaverse.

    One of the major challenges the company faces with the acquisition, however, is Activision’s history of sexual harassment and discrimination. Microsoft CEO Satya Nadella addressed this in his comments when the deal was announced, saying: “After the close, we will have significant work to do in order to continue to build a culture where everyone can do their best work.”

    Nadella’s assurance is not enough for Senators Elizabeth Warren, Bernie Sanders, Sheldon Whitehouse, and Cory Booker, however. The four senators have written a letter urging the FTC to take a closer look at the deal, expressly over concerns the merger could undermine employee-led efforts to hold Activision’s leadership accountable. Similarly, it’s believed Activision CEO Bobby Kotick will be leaving following the merger, effectively being given a golden parachute and a way to save face and avoid accountability.

    “Workers at Activision Blizzard, following years of rampant sexual misconduct and discrimination and unfair labor practices, have led calls for greater transparency and accountability in the gaming industry, and we are deeply concerned that this acquisition could further disenfranchise these workers and prevent their voices from being heard,” said the senators.

    The senators also quoted FTC Chairwoman Khan as recently stating that “robust antitrust enforcement can help ensure that workers have the freedom to seek higher pay and better working conditions, and can help promote economic opportunity and widespread prosperity for all.”

    The FTC had already declared its intentions to investigate the merger. With the senators’ additional urging, the agency will likely take an even closer look than it originally planned.

  • FTC Will Review Microsoft’s Activision Blizzard Purchase

    FTC Will Review Microsoft’s Activision Blizzard Purchase

    The Federal Trade Commission (FTC) is preparing to review Microsoft’s $68.7 billion purchase of Activision Blizzard amid increased scrutiny of major acquisitions by Big Tech.

    Microsoft announced in mid-January that it was purchasing Activision Blizzard, the maker of StarCraft, Warcraft, Call of Duty, Overwatch, and more. The deal is poised to completely shakeup the gaming landscape, provided Microsoft can close it.

    According to Bloomberg, the company’s plans are coming under close inspection by the FTC. Chairwoman Lina Khan, in particular, has been an outspoken critic of Big Tech and their acquisitions.

    Should the deal fall through, there are many potential ripple effects, not the least of which is Activision CEO Bobby Kotick. It’s believed Kotick will leave the company once the acquisition is complete. Kotick has been under fire for some time over his (mis)handling of various discrimination and sexual harassment complaints. Until now, the acquisition was seen as a graceful way for him to leave the company and pave the way for change.

  • Microsoft Buying Activision Blizzard, CEO Kotick Likely Leaving Soon After

    Microsoft Buying Activision Blizzard, CEO Kotick Likely Leaving Soon After

    Microsoft announced it is buying Activision Blizzard in a deal worth a whopping $68.7 billion.

    Activision Blizzard is responsible for some of the biggest, most successful game franchises in history, including Warcraft, Overwatch, Starcraft, Diablo, Call of Duty, and Candy Crush. Microsoft sees the acquisition as a way for it to continue to cement its position in developing the metaverse, where in-person and virtual reality merge.

    “Gaming is the most dynamic and exciting category in entertainment across all platforms today and will play a key role in the development of metaverse platforms,” said Satya Nadella, chairman and CEO, Microsoft. “We’re investing deeply in world-class content, community and the cloud to usher in a new era of gaming that puts players and creators first and makes gaming safe, inclusive and accessible to all.”

    At the same time, Forbes is reporting that Activision Blizzard CEO Bobby Kotick is likely leaving once the deal is completed. Kotick has been under fire for his role in Activision’s culture, and has been accused of knowing about sexual harassment and discrimination accusations, but not taking the necessary steps to address the problem.

    Given that Microsoft is working to establish itself as a safe work environment, it’s unlikely Kotick would have place within the company once the deal is finalized.

    According to NPR, Nadella alluded to the challenges involved in reining in Activision’s culture in a call with investors.

    “After the close, we will have significant work to do in order to continue to build a culture where everyone can do their best work,” Nadella said. 

    In the meantime, here’s to hoping Microsoft’s purchase of Activision Blizzard will lead to a Starcraft 3…