Bobby Kotick, chief executive officer of Activision Blizzard, attends the Allen & Company Sun Valley Conference on July 10, 2019, in Sun Valley, Idaho.
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Microsoft contact the game publisher for the first time Activision Blizzard About a possible relationship the same week, a media report came out claiming that Activision CEO Bobby Kotick had known for years about alleged cases of sexual assault at the company, according to a report from the company. submit the application as prescribed Released on Friday.
The filing indicates that the companies began negotiations in November, two months before agreeing to a $68.7 billion deal, which would be the largest-ever purchase for a company. with an American technology company. For Microsoft, the timing is an opportunity.
On November 16, The Wall Street Journal reports that women have accused Kotick of mistreatment. While aware of the misconduct allegations, he did not share all relevant information with the company’s board of directors, the Journal said.
Shares of Activision fell 11% in the 4 trading days following the story. That’s when Microsoft calls, new filings with the SEC show.
Kotick told employees in a video message that the Journal’s report included “an inaccurate and misleading view of our company, of me personally, and of my management.” A California state agency previously filed a lawsuit against Activision Blizzard over what it describes as sexist culture.
Phil Spencer, Microsoft’s head of games, has addressed the issue of harassment internally, because of the company’s existing relationship with Activision, according to a report. Bloomberg story On November 18, Spencer told Kotick, while talking about “another topic,” that Microsoft wanted to talk about strategic opportunities between the two companies, according to the filing.
On November 20, Microsoft CEO Satya Nadella told Kotick on a call that he wanted to explore an acquisition, the filing said.
Initially, Microsoft was considering an offer of $80 per share. That’s what Spencer passed on to Kotick and Activision President Brian Kelly on Nov. 26. The price would represent a premium of nearly 32% from the previous day’s closing price.
Negotiations progressed and the two sides finally agreed on a price of $95 per share, Microsoft announced on January 18. Shares of Activision Blizzard closed at $81.05 per share on Friday.
Kotick contacted several other companies prior to the announcement, the filing said. Kelly also received an email from someone, not named on file, who expressed interest in purchasing a Blizzard segment or Activision Blizzard’s move to participate in or in its entirety.
Microsoft expects to complete the transaction during the fiscal year ending June 30, 2023. The deal could help Microsoft add customers to Game Pass, its service for accessing hundreds of games across Xbox and PC game consoles.
