Microsoft/Xbox rocked the gaming industry today by announcing plans acquires Activision Blizzard for $68.7 billion. Activision has been embroiled in numerous sexual harassment and discrimination lawsuits, numerous employee walks and strikes at Raven Software with CEO Bobby Kotick at the center of it all.
Today’s acquisition immediately raises questions about whether Kotick will continue as CEO following the ongoing controversy, with Microsoft confirming that he will still lead Activision in current time. Kotick itself has not explicitly discussed its post-acquisition future, but it should be noted that in general, such management changes cannot be publicly disclosed until the deal is finalized. socks. Kotick did, however, write a letter for Activision Blizzard employees to streamline sales and how Microsoft can improve the company.
One key detail Kotick points out is that the transition will take some time to complete. He pointed out that Microsoft’s fiscal year 2023 ending June 30 is the estimated time frame for the full approval process to end. Until then, Activision will continue to operate independently.
Kotick hopes Microsoft’s expertise in technologies like cloud computing and AI machine learning will support Activision’s existing plans. Kotick has previously cited increasing competition around the metaverse concept, hinting that Microsoft will help them make a big mark in that space.
On Activision’s cultural issues, Kotick also points to Microsoft’s employee-care philosophy as another attraction and hopes it will help inspire continued improvement in the company’s own internal affairs. . Xbox head Phil Spencer alludes to a similar mantra of helping problem studios get better instead of just punishing them when he recently interviewed about the status of Activision.
You can read the full letter below:
Today is a very interesting day. As we continue our journey to connect and engage the world through epic entertainment, we will eventually do so as part of Microsoft. I am certain that our incredible talent and extraordinary games combined with our shared commitment to the best workplace will allow us to thrive in the increasingly competitive race to win. leadership positions when gaming through metaverse developments.
How did we get here and where are we going?
When you reflect on what we’ve built together, we have a lot to be proud of. For the past 31 years, we’ve continually shaped the game through our commitment to the fun, excitement, and thrill of achievement.
We’ve turned games into a social experience and allowed players to find purpose and meaning through the most engaging form of entertainment – our games. By doing so, we have created and entertained a community of hundreds of millions of players.
Bringing these communities together is the next step. Facebook, Google, Tencent, NetEase, Amazon, Apple, Sony, Disney – and many others – have ambitions for their own gaming initiatives and metaverse. Established and emerging competitors see an opportunity for a virtual world filled with expertly produced content, user-generated content, and rich social connections.
Our talent and our game are key ingredients in building a rich metaverse. We always attract the best game makers and build the best games, seizing opportunities with passion, inspiration, focus and determination.
Collaboration to define the future
As investments in cloud, AI and machine learning, data analytics, user interfaces, and experiential capabilities become increasingly competitive, we believe this partnership will drive well. than our ambition.
When considering possible partners, all roads ultimately lead to Microsoft. Like us, they’ve been making games for a long time. Microsoft has distributed games to hundreds of millions of computers and computing devices around the world, and there are technologies and innovations that will power the next generation of games.
Microsoft will also support us on our journey to strengthening our culture. Satya Nadella, CEO of Microsoft, is an ardent advocate of caring as the currency of leadership. Inspiring people through empathy is a powerful motivator and one we embrace as we renew our resolve – and in the work we do now – to set a new standard. New standard for friendly and welcoming office culture.
Crucially, Microsoft wants you – your talent, your creativity, and your dedication to one another. Activision Blizzard’s success throughout the years can be attributed directly to each of you. Microsoft recognizes our commitment to excellence and innovative independence that sets us apart, and we anticipate minimal changes to our workforce after the deal closes. Microsoft’s diverse activities will give us access to valuable expertise, technology, and tools, and provide even more opportunities for learning and growth.
No organization’s culture, including ours, is without improvement and thanks to your input, we are making strides in improving our culture. My commitment is to continue to grow our culture so that eventually, Microsoft will have an exemplary workplace.
Transactions like these can take a long time to complete. Until we have received all necessary regulatory approvals and other customary closure conditions are met, which we expect sometime in fiscal year 2023 ending in Microsoft’s June 30, 2023, we will continue to operate fully autonomously. I will continue as our CEO with the same passion and enthusiasm I had when I began this wonderful journey in 1991.
Of course, this announcement will raise a lot of questions. We will host many forums and events to make sure we address your concerns.
I’m incredibly proud of this company, you, and the work we’ve done together. Now for our next chapter and the endless possibilities this trade represents for us. I couldn’t appreciate your efforts, focus and dedication in connecting the world through joy and fun.
Kotick’s future with Activision has been a big question mark since it was revealed Many years’ worth of employee abuse reports are obscured from the shareholders of Activision Blizzard. At one point, he himself announced that he would consider resigning if company culture disapproves, despite petitions from employees and a small number of shareholders calling for him to step down.