Activision CEO Bobby Kotick Addresses Microsoft Acquisition In Letter To Employees

Xbox rocked the game industry today by announcing its plans to acquire Activision Blizzard for $68.7 billion. Activision is currently facing numerous discrimination and sexual harassment lawsuits. There have been multiple walkouts by employees and an Activision strike with Bobby Kotick, the CEO. 

Today’s acquisition immediately raised questions on whether or not Kotick will remain CEO in the wake of these ongoing controversies, with Microsoft confirming he will still lead Activision for the time being. Kotick himself has not explicitly discussed his future post-acquisition, but it’s worth keeping in mind that, generally, such management changes can’t be openly disclosed until after the deal is finalized. Kotick did, however, pen a letter to Activision Blizzard employees rationalizing the sale and how Microsoft can improve the company. 

Kotick emphasizes that it will be a long process. He points to Microsoft’s fiscal year of 2023 ending on June 30 as the estimated timeframe for the full approval process to wrap up. Activision will operate as an independent entity until then.

Kotick hopes Microsoft’s expertise in technologies such as cloud computing and AI machine learning will support Activision’s existing plans. Kotick mentioned previously the competition in the space of the metaverse, implying that Microsoft would be an important help to them. 

In terms of Activision’s cultural problems, Kotick also points to Microsoft’s philosophy of employee caring as another selling point and hopes it will help inspire to continue to improve its own internal issues. Phil Spencer, Xbox’s head of operations, spoke out about a similar philosophy of working with problematic studios rather than punishing them. 

The complete letter can be viewed below. 

Team,

This is an exciting time. We will be a part of Microsoft as we go on our quest to engage and connect the world with epic entertainment. We will be growing in a more competitive race for leadership, thanks to our extraordinary talent and our commitment to the highest quality workplace.

How we got here and where we’re going

When you reflect on what we’ve built together, we have so much to be proud of. For the last 31 years, we’ve continuously shaped gaming through our commitment to deliver joy, fun, and the thrill of accomplishment.

We’ve transformed games into social experiences and enabled players to find purpose and meaning through the most engaging form of entertainment – our games. By doing so, we’ve created and entertained communities of hundreds of millions of players.

The next step is to connect these diverse communities. Facebook, Google, Tencent, NetEase, Amazon, Apple, Sony, Disney – and many more – have ambitions for their own gaming and metaverse initiatives. There is potential to create virtual worlds with professional content, user-generated content and rich social networks. Both emerging and established competitors are interested.

The construction of an expansive metaverse is dependent on our creativity and the quality of our games. The best game designers have always been attracted to us. Our passion for creating the most amazing games has allowed us to seize every opportunity with inspiration, passion, focus, determination.

Partnering to shape the future

We believe that this partnership will help us achieve our goals as cloud computing, AI, machine learning, data analysis, user interfaces and experience capabilities become more competitive.

Microsoft is the most obvious choice when it comes to potential partners. They have been creating games since long, just like us. Microsoft has already distributed games to hundreds of millions of the world’s computers and computing devices and has technologies and innovation that will support the next generation of games.

Microsoft will also support us in our efforts to strengthen our culture. Satya Nadella, Microsoft’s CEO, has been a passionate advocate for 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 are now doing – to set a new standard for a welcoming and inclusive workplace culture.

Importantly, Microsoft wants you – your talent, your creativity, and your dedication to each other. Activision Blizzard’s success throughout the years can be directly attributed to each of you. Microsoft understands that our unique commitment to creativity and excellence sets us apart. Therefore, we expect little change in the workforce after the closing of the transaction. Microsoft’s diverse operations will give us access to valuable expertise, technology, and tools and provide even greater opportunities for learning and development.

No organization’s culture, including ours, is without need for improvement, and thanks to your input, we are making strides in improving ours. I pledge to keep improving our culture until Microsoft becomes an outstanding workplace.

What’s next

These transactions can be slow and expensive. Until we receive all the necessary regulatory approvals and other customary closing conditions are satisfied, which we expect to be sometime in Microsoft’s fiscal 2023 year ending June 30, 2023, we will continue to operate completely autonomously. With the same enthusiasm and passion that I brought to this remarkable journey, in 1991, I will remain our CEO.

There will be many questions about this announcement. To address all your concerns, we will hold numerous events and forums.

This company and you are both incredibly special to me. I’m proud of the partnership we have built together. Now it’s on to our next chapter and the endless possibilities this transaction represents for us. I couldn’t be more appreciative of your efforts, focus, and the dedication to connecting the world through joy and fun.

Thank you.

Bobby

Activision’s future has been in doubt since Kotick was reportedly found to have abused thousands of reports about employee abuse from Activision Blizzard shareholder. At one point, he himself stated he would consider stepping down if company culture didn’t approve, although employee petitions and a minority of shareholders have called for him to resign as well.