Activision CEO Among Top Executives Set to Make Massive Fortunes From Staggering Microsoft Deal
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On January 18, Microsoft announced one of the biggest deals in the history of gaming. The announcement sent ripples across the industry as the tech giant revealed its acquisition of Activision Blizzard. Microsoft’s $68.7 billion deal gave it access to some of gaming’s most prominent franchises like Call of Duty, Overwatch, and World of WarCraft.
The announcement also coincided with the acquisition craze, as massive names like Sony scrambled to consolidate their position in the market with their own acquisitions. However, it seems the biggest impact of the deal was internal rather than its effects on the gaming market. A recent report by Axios has shone some light on what this deal could mean for Activision CEO Bobby Kotick.
As shared by Axios, if any of the listed Activision Blizzard executives leave the company between 6-8 months after the Microsoft deal closes, they are entitled to millions in compensation, with current Chief Operating Officer at the highest payout at $29 million. pic.twitter.com/aTUULqYsEm
— CharlieIntel (@charlieINTEL) February 23, 2022
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Microsoft-Activision deal gives Kotick a golden parachute
Microsoft’s January 18 announcement came as a shock to many fans. The momentous acquisition worth $68.7 billion even dwarfed Sony’s acquisition of Bungie. Significantly, fans were worried about beloved franchise Call of Duty soon becoming an Xbox exclusive. However, Microsoft soon quelled that rumor by admitting it planned to honor the existing agreements with Sony.
But perhaps the biggest beneficiary of the settlement is none other than Activision CEO Bobby Kotick. In CharlieIntel’s tweet, they mention how any of the listed executives who leave the company within 6-8 months after the deal can gain massive compensation. Explicitly, one of those names is Kotick.
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As reported by Axios, Kotick owns 6.5 million shares in his company. As per Microsoft’s acquisition price, this would total to a colossal $619 million. Additionally, if Activision’s board sees an improvement in the company’s culture, Kotick would be eligible for up to $22 million in stock in July or later.
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Currently, the CEO’s contract will expire in March 2023; however, depending on the aforementioned variables, the board could extend it by 12 months. Conversely, if Microsoft fires him without cause, he’ll get an aptly named ‘Golden parachute’ worth $15 million.
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Considering how Kotick has been under constant scrutiny recently, it is not unreasonable for readers to assume that golden parachute could come sooner than later. While it is a passive pay-out, it is important to note Activision Blizzard expects a massive $2.5 billion revenue increase in 2023, turning it into a lucrative venture for Microsoft.
What are your thoughts on the matter? Tell us in the comments below.
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