Microsoft made a huge splash when it announced its acquisition of gaming juggernaut Activision Blizzard. As for where that leaves CEO Bobby Kotick, he might have a golden parachute waiting for him.
The two companies confirmed Kotick will remain CEO through Microsoft’s fiscal year 2023, which ends June 30, 2023. Microsoft expects to close the deal by then, meaning Kotick will stay on for a while longer.
However, a Wall Street Journal report stated Kotick’s days as CEO will eventually end.
Microsoft and Activision Blizzard reportedly agreed Kotick will leave when the deal closes. He will leave richer, however – his employment contract includes a severance package worth $293 million if he loses his job to a corporate takeover.
Also, he might not be entirely gone from Microsoft’s purview. In a statement sent to the New York Times, Kotick said he “will be available as needed” after the deal closes.
This is assuming the deal goes through. Regulators in the United States and in Europe will evaluate the acquisition, which could face relatively more scrutiny in Europe.
The deal is worth $68.7 billion, according to Microsoft. It will allow the company to host Activision Blizzard titles on its Xbox Game Pass subscription service.
It will also allow Microsoft to immediately make a presence in the mobile space. The company has struggled to put out an enduring hit, with Minecraft Earth and Forza Street not making much of an impression.
The opposite has been true with Activision Blizzard, which owns Candy Crush creator King Digital Entertainment. Since January 2014, Candy Crush Saga has generated around $7.1 billion in revenue.