User:Sh-abkcomms/Misconduct trim
Clean version
=Workplace misconduct lawsuit and proposed acquisition by Microsoft (2021–present)=
{{Main articles|California Department of Fair Employment and Housing v. Activision Blizzard|ABK Workers Alliance|Acquisition of Activision Blizzard by Microsoft}}
{{anchor|DFEH}}
On July 20, 2021, the California Department of Fair Employment and Housing (DFEH) filed a suit alleging sexual harassment, employment discrimination and retaliation on the part of Activision Blizzard. A second lawsuit was filed against the company by its shareholders asserting it falsified knowledge of these problems in their financial statements,{{cite web |url=https://arstechnica.com/gaming/2021/08/shareholders-sue-activision-blizzard-for-withholding-harassment-info/ |title=Shareholders sue Activision Blizzard for withholding harassment info |first=Kyle |last=Orland |date=August 3, 2021 |accessdate=August 3, 2021 |work=Ars Technica |archive-date=August 3, 2021 |archive-url=https://web.archive.org/web/20210803213108/https://arstechnica.com/gaming/2021/08/shareholders-sue-activision-blizzard-for-withholding-harassment-info/ |url-status=live}} though this suit was dismissed due to failure to meet thresholds for claims,{{cite web |url=https://news.bloomberglaw.com/social-justice/activision-gets-initial-investor-suit-over-sex-harassment-tossed?context=search&index=0 |title=Activision Gets Investor Suit Over Sex Harassment Probes Tossed |first=Maeve |last=Allsup |date=April 20, 2022 |accessdate=April 20, 2022 |work=Bloomberg Law}} The Equal Employment Opportunity Commission had also filed suit against Activision-Blizzard from their own investigation of the workplace conditions but the company had settled the same day it was filed, which included setting aside an {{USD|18 million|long=no}} relief fund for affected employees.{{cite web |url=https://www.theverge.com/2021/9/27/22697341/us-eeoc-sues-activision-blizzard-sexual-harassment-discrimination |title=US employment watchdog sues Activision Blizzard over discrimination claims |first=Adi |last=Robertson |date=September 27, 2021 |accessdate=September 27, 2021 |work=The Verge |archive-date=September 27, 2021 |archive-url=https://web.archive.org/web/20210927223119/https://www.theverge.com/2021/9/27/22697341/us-eeoc-sues-activision-blizzard-sexual-harassment-discrimination |url-status=live}}
On January 18, 2022, Microsoft announced that it would be acquiring Activision Blizzard for $68.7 billion in an all-cash deal, or approximately $95 per share. Activision Blizzard's stock price jumped nearly 40% that day in pre-market trading. The deal would make Microsoft the third-largest gaming company in the world and the largest headquartered in the Americas, behind Chinese company Tencent and the Japanese conglomerate Sony.
Activision Blizzard's shareholders approved of the acquisition near-unanimously in April 2022.{{cite web |url=https://www.reuters.com/technology/activision-blizzard-shareholders-approve-687-bln-microsoft-deal-2022-04-28/ |title=Activision Blizzard shareholders approve $68.7 bln Microsoft deal |work=Reuters |date=April 28, 2022 |accessdate=April 29, 2022}} In the United States, the acquisition was reviewed by the Federal Trade Commission (FTC) rather than traditionally by the U.S. Department of Justice, as the agency had raised more concerns over mergers and acquisitions in the Big Tech sector in the last decade.{{cite web |url=https://www.bloomberg.com/news/articles/2022-02-01/microsoft-deal-for-activision-to-be-reviewed-by-ftc-in-u-s |title=Microsoft Deal for Activision to Be Reviewed by FTC in U.S. |first=David |last=McLaughlin |date=February 1, 2022 |accessdate=February 1, 2022 |work=Bloomberg News |archiveurl=https://archive.today/20220201090604/https://www.bloomberg.com/news/articles/2022-02-01/microsoft-deal-for-activision-to-be-reviewed-by-ftc-in-u-s?srnd=premium-europe&sref=y3YMCJ4e |archivedate=February 1, 2022 |url-status=live }} In addition, the U.S. Securities and Exchange Commission (SEC) reviewed potential claims that investors close to Kotick used insider trading prior to the acquisition announcement;{{cite web |url=https://www.wsj.com/articles/u-s-probes-options-trade-that-gained-on-microsoft-activision-deal-11646787000 |title=U.S. Probes Trade by Barry Diller, David Geffen Before Big Merger |first1=Dave |last1=Michaels |first2=Jeffrey |last2=Trachtenberg |date=March 8, 2022 |accessdate=April 16, 2022 |work=The Wall Street Journal}} Activision Blizzard said they would fully cooperate with the SEC's review.{{cite web |url=https://www.nytimes.com/2022/04/15/technology/activision-sec-insider-trading.html |title=Activision tells regulators it will cooperate with insider trading investigation. |first=Kellen |last=Browning |date=April 15, 2022 |accessdate=April 16, 2022 |work=The New York Times}}
On April 26, 2023, the United Kingdom's Competition and Markets Authority (CMA) blocked Microsoft's acquisition of Activision Blizzard, claiming that it would lead to "reduced innovation and less choice for UK gamers over the years to come."{{cite web |title=Scoop: UK blocks Microsoft takeover of Activision Blizzard |url=https://edition.cnn.com/2023/04/26/tech/microsoft-activision-blizzard/index.html |website=CNN |date=April 26, 2023 |access-date=28 April 2023}} The same day, Microsoft announced plans to appeal this ruling.{{cite web |title=Scoop: Microsoft vows to appeal as the UK regulator blocks its acquisition of Activision Blizzard|url= https://www.gamesindustry.biz/breaking-microsoft-vows-to-appeal-as-the-uk-regulator-blocks-its-acquisition-of-activision-blizzard |website=GamesIndustry |date=April 26, 2023| access-date=28 April 2023}}
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Full markup
=Workplace misconduct lawsuit and proposed acquisition by Microsoft (2021–present)=
{{Main articles|California Department of Fair Employment and Housing v. Activision Blizzard|ABK Workers Alliance|Acquisition of Activision Blizzard by Microsoft}}
{{anchor|DFEH}}
As a result of a two-year investigation, on July 20, 2021, the California Department of Fair Employment and Housing (DFEH) filed a suit alleging sexual harassment, employment discrimination and retaliation on the part of Activision Blizzard. The details of the allegations involve accusations of inappropriate behavior towards women and fostering a "frat boy" culture. The company's management initially tried to pass off the allegations as false, which led to employees sharply criticizing the management's lack of seriousness in the matter.{{Cite web |url=https://news.bloomberglaw.com/daily-labor-report/activision-blizzard-sued-by-california-over-frat-boy-culture |title=Activision Blizzard Sued Over 'Frat Boy' culture, Harassment |last=Allsup |first=Maeve |date=July 21, 2021 |website=Bloomberg Law |access-date=July 22, 2021 |archive-date=August 2, 2021 |archive-url=https://web.archive.org/web/20210802155138/https://news.bloomberglaw.com/daily-labor-report/activision-blizzard-sued-by-california-over-frat-boy-culture |url-status=live}}{{Cite web |url=https://www.bbc.co.uk/news/technology-57929543 |title=California sues Activision Blizzard over alleged harassment |date=July 21, 2021 |website=BBC |access-date=July 27, 2021 |archive-date=July 27, 2021 |archive-url=https://web.archive.org/web/20210727133342/https://www.bbc.co.uk/news/technology-57929543 |url-status=live}} Even after CEO's Bobby Kotick's open letter to employees that said their initial response was improper and that they would be internally reviewing matters, employees still staged a walk-off to protest the lack of action the company had taken in regards to the lawsuit.{{cite web |url=https://www.theverge.com/2021/7/27/22595922/activision-blizzard-employees-walk-out-sexual-harassment |title=Activision Blizzard employees to walk out following sexual harassment lawsuit |first1=Zoe |last1=Schiffer |first2=Andrew |last2=Webster |date=July 27, 2021 |accessdate=July 27, 2021 |work=The Verge |archive-date=July 28, 2021 |archive-url=https://web.archive.org/web/20210728181733/https://www.theverge.com/2021/7/27/22595922/activision-blizzard-employees-walk-out-sexual-harassment |url-status=live}} DFEH's lawsuit brought a second lawsuit {{highlight|was filed}} against the company by its shareholders asserting it falsified knowledge of these problems in their financial statements,{{cite web |url=https://arstechnica.com/gaming/2021/08/shareholders-sue-activision-blizzard-for-withholding-harassment-info/ |title=Shareholders sue Activision Blizzard for withholding harassment info |first=Kyle |last=Orland |date=August 3, 2021 |accessdate=August 3, 2021 |work=Ars Technica |archive-date=August 3, 2021 |archive-url=https://web.archive.org/web/20210803213108/https://arstechnica.com/gaming/2021/08/shareholders-sue-activision-blizzard-for-withholding-harassment-info/ |url-status=live}} though this suit was dismissed due to failure to meet thresholds for claims,{{cite web |url=https://news.bloomberglaw.com/social-justice/activision-gets-initial-investor-suit-over-sex-harassment-tossed?context=search&index=0 |title=Activision Gets Investor Suit Over Sex Harassment Probes Tossed |first=Maeve |last=Allsup |date=April 20, 2022 |accessdate=April 20, 2022 |work=Bloomberg Law}} and led the U.S. Securities and Exchange Commission to begin evaluating the company.{{cite web |url=https://www.wsj.com/articles/sec-is-investigating-activision-blizzard-over-workplace-practices-disclosures-11632165080 |title=SEC Is Investigating Activision Blizzard Over Workplace Practices, Disclosures |first1=Kirsten |last1=Grind |first2=Sarah E. |last2=Needleman |date=September 20, 2021 |accessdate=September 20, 2021 |work=The Wall Street Journal |archive-date=September 20, 2021 |archive-url=https://web.archive.org/web/20210920192056/https://www.wsj.com/articles/sec-is-investigating-activision-blizzard-over-workplace-practices-disclosures-11632165080 |url-status=live}} The Equal Employment Opportunity Commission had also filed suit against Activision-Blizzard from their own investigation of the workplace conditions but the company had settled the same day it was filed, which included setting aside an {{USD|18 million|long=no}} relief fund for affected employees.{{cite web |url=https://www.theverge.com/2021/9/27/22697341/us-eeoc-sues-activision-blizzard-sexual-harassment-discrimination |title=US employment watchdog sues Activision Blizzard over discrimination claims |first=Adi |last=Robertson |date=September 27, 2021 |accessdate=September 27, 2021 |work=The Verge |archive-date=September 27, 2021 |archive-url=https://web.archive.org/web/20210927223119/https://www.theverge.com/2021/9/27/22697341/us-eeoc-sues-activision-blizzard-sexual-harassment-discrimination |url-status=live}} Kotick requested the board to reduce his pay to the bare minimum required by California law in August 2021 and withhold his bonuses until the lawsuit was resolved, after a {{USD|155 million|long=no}} bonus package he received in July 2021 following investors criticism on the size of the package.{{Cite web |last=Yin-Poole |first=Wesley |date=2021-06-22 |title=Activision Blizzard boss Bobby Kotick's $155m pay package approved by shareholders |url=https://www.eurogamer.net/articles/2021-06-22-activision-blizzard-boss-bobby-koticks-usd155m-pay-package-approved-by-shareholders |access-date=2022-01-23 |website=Eurogamer |language=en |archive-date=January 18, 2022 |archive-url=https://web.archive.org/web/20220118184157/https://www.eurogamer.net/articles/2021-06-22-activision-blizzard-boss-bobby-koticks-usd155m-pay-package-approved-by-shareholders |url-status=live}}{{cite web |url=https://deadline.com/2021/10/activision-blizzard-ceo-bobby-kotick-concedes-failures-sexual-harassment-1234863990/ |title=Activision Blizzard CEO Bobby Kotick Concedes Systemic Failures Amid Harassment Claims: "Guardrails Weren't In Place" |first=Dade |last=Hayes |date=October 28, 2021 |accessdate=October 28, 2021 |work=Deadline Hollywood |archive-date=October 28, 2021 |archive-url=https://web.archive.org/web/20211028131839/https://deadline.com/2021/10/activision-blizzard-ceo-bobby-kotick-concedes-failures-sexual-harassment-1234863990/ |url-status=live}}{{Cite web |date=2022-01-19 |title=Microsoft deal to deliver $390 million payday for Activision's embattled CEO |url=https://www.euronews.com/next/2022/01/19/activision-m-a-microsoft-kotick |access-date=2022-01-23 |website=euronews |language=en |archive-date=January 23, 2022 |archive-url=https://web.archive.org/web/20220123160540/https://www.euronews.com/next/2022/01/19/activision-m-a-microsoft-kotick |url-status=live}} A Wall Street Journal report in November 2021 alleged that Kotick knew about misconduct and sexual harassment within the company without reporting them to the board of directors, leading to an increased pressure on Kotick to leave the company.{{Cite news |last=Needleman |first=Kirsten Grind, Ben Fritz and Sarah E. |date=November 16, 2021 |title=Activision CEO Bobby Kotick Knew for Years About Sexual-Misconduct Allegations at Videogame Giant |language=en-US |work=The Wall Street Journal |url=https://www.wsj.com/articles/activision-videogames-bobby-kotick-sexual-misconduct-allegations-11637075680 |access-date=January 18, 2022 |issn=0099-9660 |archive-date=November 16, 2021 |archive-url=https://web.archive.org/web/20211116160439/https://www.wsj.com/articles/activision-videogames-bobby-kotick-sexual-misconduct-allegations-11637075680 |url-status=live}}{{Cite web |last1=Schreier |first1=Jason |last2=Molot |first2=Clara |date=November 16, 2021 |title=Activision's CEO Is Embattled by Staff and Investors |url=https://www.bloomberg.com/news/articles/2021-11-17/activision-atvi-ceo-bobby-kotick-is-under-pressure-to-resign |url-status=live |archive-url=https://web.archive.org/web/20211130192246/https://www.bloomberg.com/news/articles/2021-11-17/activision-atvi-ceo-bobby-kotick-is-under-pressure-to-resign |archive-date=November 30, 2021 |access-date=January 18, 2022 |website=Bloomberg News}} The lawsuit became a debated matter in the industry as it touches on the Me Too movement and lack of unionization for video game developers to protect them from such mistreatment.{{cite news |url=https://www.nytimes.com/2021/07/29/technology/activision-walkout-metoo-call-of-duty.html |title=Activision, Facing Internal Turmoil, Grapples With #MeToo Reckoning |first1=Kellen |last1=Browning |first2=Mike |last2=Isaac |date=July 29, 2021 |accessdate=July 30, 2021 |work=The New York Times |archive-date=July 30, 2021 |archive-url=https://web.archive.org/web/20210730002921/https://www.nytimes.com/2021/07/29/technology/activision-walkout-metoo-call-of-duty.html |url-status=live}}{{Cite web |last=Gurley |first=Lauren Kaori |date=July 29, 2021 |title=What Can Activision's Own Investigation of Harassment Actually Accomplish? |url=https://www.vice.com/en/article/akgade/what-can-activisions-own-investigation-of-harassment-actually-accomplish |access-date=August 2, 2021 |website=Vice Waypoint |archive-date=August 1, 2021 |archive-url=https://web.archive.org/web/20210801100557/https://www.vice.com/en/article/akgade/what-can-activisions-own-investigation-of-harassment-actually-accomplish |url-status=live}}{{cite web |url=https://www.pastemagazine.com/games/activision-blizzard/activision-blizzard-walkout-part-2/ |title=Activision Blizzard Employees Walk Out, as Company Hires Law Firm Known for Union-Busting |first=Katherine |last=Long |date=July 30, 2021 |accessdate=August 2, 2021 |work=Paste |archive-date=August 2, 2021 |archive-url=https://web.archive.org/web/20210802203437/https://www.pastemagazine.com/games/activision-blizzard/activision-blizzard-walkout-part-2/ |url-status=live}}
On January 18, 2022, Microsoft announced that it would be acquiring Activision Blizzard for $68.7 billion in an all-cash deal, or approximately $95 per share. Activision Blizzard's stock price jumped nearly 40% that day in pre-market trading. The deal would make Microsoft the third-largest gaming company in the world and the largest headquartered in the Americas, behind Chinese company Tencent and the Japanese conglomerate Sony. Goldman Sachs will serve as the financial advisor to Microsoft, and Allen & Company will be Activision's financial advisors. Simpson Thacher will serve as legal advisor for Microsoft while Skadden will serve as legal advisor for Activision.{{Cite news |last=Jackson |first=Sierra |date=2022-01-18 |title=Simpson Thacher, Skadden drafted for Microsoft's $69 bln Activision buy |language=en |work=Reuters |url=https://www.reuters.com/legal/transactional/simpson-thacher-skadden-drafted-microsofts-69-bln-activision-buy-2022-01-18/ |access-date=2022-06-19}} The deal has been approved by both companies' board of directors and is expected to close in 2023 following international government regulatory review of the action. Upon completion of the deal, Activision Blizzard would be a sibling entity to Xbox Game Studios under a new Microsoft Gaming division with Phil Spencer as its lead. The deal would also allow Microsoft to offer Activision Blizzard games on its Xbox Game Pass service. Spencer also spoke to reviving some of the games in Activision Blizzard's past that he himself enjoyed, mentioning series such as King's Quest, Guitar Hero and Hexen: Beyond Heretic.{{cite news |url=https://www.washingtonpost.com/video-games/2022/01/20/xbox-activision-blizzard-phil-spencer/ |title=Xbox CEO Phil Spencer on reviving old Activision games as Microsoft positions itself as tech's gaming company |first=Gene |last=Park |date=January 20, 2022 |accessdate=January 20, 2022 |newspaper=Washington Post |archive-date=January 21, 2022 |archive-url=https://web.archive.org/web/20220121003142/https://www.washingtonpost.com/video-games/2022/01/20/xbox-activision-blizzard-phil-spencer/ |url-status=live}}
Kotick stated that he, Spencer, and Microsoft's CEO Satya Nadella have had discussions in 2021 on their concern of the power of Tencent, NetEase, Apple, Inc. and Google, and that Activision Blizzard lacked the computation expertise in machine learning and data analytics that would be necessary to compete with these companies. According to Kotick, this led to the idea of Microsoft, which does have those capabilities, acquiring Activision Blizzard at an attractive price point.{{cite web |url=https://venturebeat.com/2022/01/18/bobby-kotick-interview-why-activision-blizzard-did-the-deal-with-microsoft/ |title=Bobby Kotick interview: Why Activision Blizzard did the deal with Microsoft |first=Dean |last=Takahashi |date=January 18, 2022 |accessdate=January 18, 2022 |work=Venture Beat |archive-date=January 20, 2022 |archive-url=https://web.archive.org/web/20220120230626/https://venturebeat.com/2022/01/18/bobby-kotick-interview-why-activision-blizzard-did-the-deal-with-microsoft/ |url-status=live}} In a statement released on Activision Blizzard's investor website, the company said its industry is the "most dynamic and exciting category of entertainment across all platforms" and that gaming will be the forefront of the development of the emerging metaverse. Some journalists saw this acquisition, and Microsoft's March 2021 acquisition of Bethesda Softworks, as a bid to compete against Meta Platforms, formerly known as Facebook.{{Cite web |title=Activision Blizzard {{!}} Microsoft to acquire Activision Blizzard to bring the joy and community of gaming to everyone, across every device |url=https://investor.activision.com/news-releases/news-release-details/microsoft-acquire-activision-blizzard-bring-joy-and-community |access-date=January 18, 2022 |website=investor.activision.com |language=en |archive-date=January 21, 2022 |archive-url=https://web.archive.org/web/20220121141054/https://investor.activision.com/news-releases/news-release-details/microsoft-acquire-activision-blizzard-bring-joy-and-community |url-status=live}}{{Cite web |last=Kovach |first=Steve |date=January 18, 2022 |title=Microsoft to buy Activision in $68.7 billion all-cash deal |url=https://www.cnbc.com/2022/01/18/microsoft-to-buy-activision.html |access-date=January 18, 2022 |website=CNBC |language=en |archive-date=January 18, 2022 |archive-url=https://web.archive.org/web/20220118154835/https://www.cnbc.com/2022/01/18/microsoft-to-buy-activision.html |url-status=live}}{{Cite web |last=Warren |first=Tom |date=January 18, 2022 |title=Microsoft to acquire Activision Blizzard for $68.7 billion |url=https://www.theverge.com/2022/1/18/22889258/microsoft-activision-blizzard-xbox-acquisition-call-of-duty-overwatch |access-date=January 18, 2022 |website=The Verge |language=en |archive-date=January 18, 2022 |archive-url=https://web.archive.org/web/20220118133548/https://www.theverge.com/2022/1/18/22889258/microsoft-activision-blizzard-xbox-acquisition-call-of-duty-overwatch |url-status=live}}
The timing of the acquisition was reported by The Wall Street Journal and Bloomberg News to be in response to the ongoing DFEH lawsuit. Reports from both newspapers stated that Activision Blizzard had been considering a buyout from other companies, including Facebook parent company Meta Platforms, due to the weaker than expected financial performance of their latest game releases and production delays.{{cite news |url=https://www.wsj.com/articles/activision-blizzard-microsoft-deal-11642557922 |title=Activision Blizzard's Workplace Problems Spurred $75 Billion Microsoft Deal |first1=Kirsten |last1=Grind |first2=Cara |last2=Lombardo |first3=Ben |last3=Fritz |date=January 19, 2022 |accessdate=January 19, 2022 |work=The Wall Street Journal |archive-date=January 19, 2022 |archive-url=https://web.archive.org/web/20220119025847/https://www.wsj.com/articles/activision-blizzard-microsoft-deal-11642557922 |url-status=live}}{{cite news |url=https://www.bloomberg.com/news/articles/2022-01-18/microsoft-to-buy-activision-blizzard-in-69-billion-gaming-deal |title=Microsoft Buys Scandal-Tainted Activision in Bet on Metaverse |first1=Dina |last1=Bass |first2=Nate |last2=Lanxon |date=January 18, 2022 |accessdate=January 19, 2022 |work=Bloomberg News |archiveurl=https://archive.today/20220118224215/https://www.bloomberg.com/news/articles/2022-01-18/microsoft-to-buy-activision-blizzard-in-69-billion-gaming-deal |archivedate=January 18, 2022 |url-status=live}}{{cite web |url=https://www.bloomberg.com/news/articles/2022-01-19/microsoft-effort-to-buy-activision-spurred-by-misconduct-fallout-at-gamemaker |title=Activision Misconduct Fallout Prompted Microsoft to Pursue Deal |first1=Dina |last1=Bass |first2=Liana |last2=Baker |date=January 19, 2022 |accessdate=January 19, 2022 |work=Bloomberg News |archiveurl=https://archive.today/20220119021935/https://www.bloomberg.com/news/articles/2022-01-19/microsoft-effort-to-buy-activision-spurred-by-misconduct-fallout-at-gamemaker |archivedate=January 19, 2022 |url-status=live}} Based on SEC filings related to the merger, Microsoft approached Activision Blizzard again in the days immediately following the November 2021 Wall Street Journal report regarding a buyout.{{cite web |url=https://www.cnbc.com/2022/02/18/microsofts-activision-talks-started-after-reporting-on-sex-misconduct.html |title=Microsoft's talks with Activision started days after report on sexual misconduct sent stock tumbling |first=Jordan |last=Novet |date=February 18, 2022 |accessdate=February 18, 2022 |work=CNBC}} While Kotick had been hesitant about selling the company, the board had gone ahead with the deal as they continued to fear the ongoing impact of the lawsuit while Kotick remained on the board The buyout would provide a graceful exit for Kotick in the future, ranging in $252.2-292.9 million over most scenarios.{{Cite web |title=ACTIVISION BLIZZARD, INC. - DEF 14A |url=https://www.sec.gov/Archives/edgar/data/0000718877/000130817921000286/latvi2021_def14a.htm |access-date=2022-01-20 |website=www.sec.gov |archive-date=January 20, 2022 |archive-url=https://web.archive.org/web/20220120145844/https://www.sec.gov/Archives/edgar/data/0000718877/000130817921000286/latvi2021_def14a.htm |url-status=live}}
According to official announcements, under the deal Kotick will remain the CEO of Activision Blizzard,{{Cite web |date=January 18, 2022 |title=Bobby Kotick will remain as Activision Blizzard CEO after Microsoft acquisition |url=https://www.videogameschronicle.com/news/bobby-kotick-will-remain-as-activision-blizzard-ceo-after-microsoft-acquisition/ |access-date=January 18, 2022 |website=VGC |language=en-GB |archive-date=January 18, 2022 |archive-url=https://web.archive.org/web/20220118134846/https://www.videogameschronicle.com/news/bobby-kotick-will-remain-as-activision-blizzard-ceo-after-microsoft-acquisition/ |url-status=live}}{{Cite web |last=Skrebels |first=Joe |date=January 18, 2022 |title=Bobby Kotick Will Remain Activision Blizzard CEO After Xbox Acquisition |url=https://www.ign.com/articles/bobby-kotick-xbox-activision-blizzard-acquisition |access-date=January 18, 2022 |website=IGN |language=en |archive-date=January 18, 2022 |archive-url=https://web.archive.org/web/20220118143051/https://www.ign.com/articles/bobby-kotick-xbox-activision-blizzard-acquisition |url-status=live}}{{Cite web |last=Myers |first=Maddy |date=January 18, 2022 |title=Microsoft buys Activision Blizzard for $68.7B |url=https://www.polygon.com/22889270/microsoft-buys-activision-blizzard-xbox-phil-spencer-ceo |access-date=January 18, 2022 |website=Polygon |language=en-US |archive-date=January 18, 2022 |archive-url=https://web.archive.org/web/20220118135835/https://www.polygon.com/22889270/microsoft-buys-activision-blizzard-xbox-phil-spencer-ceo |url-status=live}}{{Cite web |date=2022-01-18 |title=Microsoft to acquire Activision Blizzard to bring the joy and community of gaming to everyone, across every device |url=https://news.microsoft.com/2022/01/18/microsoft-to-acquire-activision-blizzard-to-bring-the-joy-and-community-of-gaming-to-everyone-across-every-device/ |access-date=2022-01-20 |website=Stories |language=en-US |archive-date=January 21, 2022 |archive-url=https://web.archive.org/web/20220121124633/https://news.microsoft.com/2022/01/18/microsoft-to-acquire-activision-blizzard-to-bring-the-joy-and-community-of-gaming-to-everyone-across-every-device/ |url-status=live}} and is expected to keep the position while the deal goes through regulatory processes, as Activision Blizzard remains independent from Microsoft until the deal closes.{{Cite web |last=Mackay |first=Liam |date=January 18, 2022 |title=Microsoft to acquire Call of Duty publisher Activision Blizzard |url=https://charlieintel.com/microsoft-to-acquire-call-of-duty-publisher-activision-blizzard/157981/ |access-date=January 18, 2022 |website=Charlie INTEL |language=en-US |archive-date=January 18, 2022 |archive-url=https://web.archive.org/web/20220118134437/https://charlieintel.com/microsoft-to-acquire-call-of-duty-publisher-activision-blizzard/157981/ |url-status=live}} According to The Wall Street Journal, Kotick "will depart once the deal closes" under Microsoft's management, while Kotick said in an interview that he has an interest in remaining in the company.{{Cite web |author=Austin Wood |date=2022-01-18 |title=Bobby Kotick will remain Activision Blizzard CEO but reports suggest he may leave once Microsoft deal closes |url=https://www.gamesradar.com/bobby-kotick-will-remain-activision-blizzard-ceo-but-reports-suggest-he-may-leave-once-microsoft-deal-closes/ |access-date=2022-01-20 |website=gamesradar |language=en |archive-date=January 20, 2022 |archive-url=https://web.archive.org/web/20220120145845/https://www.gamesradar.com/bobby-kotick-will-remain-activision-blizzard-ceo-but-reports-suggest-he-may-leave-once-microsoft-deal-closes/ |url-status=live}}{{Cite web |last=Kaplan |first=Anna |title=Activision Blizzard CEO Kotick Reportedly Leaving Company After Microsoft Deal Closes |url=https://www.forbes.com/sites/annakaplan/2022/01/18/activision-blizzard-ceo-kotick-reportedly-leaving-company-after-microsoft-deal-closes/ |access-date=2022-01-20 |website=Forbes |language=en |archive-date=January 20, 2022 |archive-url=https://web.archive.org/web/20220120145844/https://www.forbes.com/sites/annakaplan/2022/01/18/activision-blizzard-ceo-kotick-reportedly-leaving-company-after-microsoft-deal-closes/ |url-status=live}} Microsoft has yet to speak directly about the Activision Blizzard lawsuit following news of the acquisition, however the company announced a week prior that it would be reviewing its own sexual harassment and gender discrimination policies.{{cite web |last=Nightingale |first=Ed |date=January 18, 2022 |title=Microsoft to review its sexual harassment and gender discrimination policies |url=https://www.eurogamer.net/articles/2022-01-18-microsoft-to-review-its-sexual-harassment-and-gender-discrimination-policies |work=Eurogamer |accessdate=January 18, 2022 |archive-date=January 18, 2022 |archive-url=https://web.archive.org/web/20220118155906/https://www.eurogamer.net/articles/2022-01-18-microsoft-to-review-its-sexual-harassment-and-gender-discrimination-policies |url-status=live}}
Several Activision Blizzard employees have expressed cautious optimism with respect to the deal, with the ABK Workers Alliance, a group of employees pushing for unionization in the wake of the DFEH lawsuit, saying the acquisition did "not change the goals" of the Alliance.{{Cite web |last=Nightingale |first=Ed |date=2022-01-19 |title=Activision Blizzard staff react to Microsoft buyout news |url=https://www.eurogamer.net/articles/2022-01-19-activision-blizzard-staff-react-to-the-microsoft-acquisition-news |access-date=2022-01-20 |website=Eurogamer |language=en |archive-date=January 20, 2022 |archive-url=https://web.archive.org/web/20220120065928/https://www.eurogamer.net/articles/2022-01-19-activision-blizzard-staff-react-to-the-microsoft-acquisition-news |url-status=live}}{{Cite web |last=Knoop |first=Joseph |date=2022-01-18 |title=The Video Game Industry Reacts to Microsoft Buying Activision Blizzard King |url=https://www.ign.com/articles/microsoft-activision-blizzard-reactions-games-industry |access-date=2022-01-20 |website=IGN |language=en |archive-date=January 20, 2022 |archive-url=https://web.archive.org/web/20220120152312/https://www.ign.com/articles/microsoft-activision-blizzard-reactions-games-industry |url-status=live}}{{Cite web |date=2022-01-18 |title=Activision Blizzard workers cautiously optimistic after Microsoft acquisition |url=https://www.upcomer.com/activision-blizzard-workers-cautiously-optimistic-after-microsoft-acquisition/ |access-date=2022-01-20 |website=Upcomer |language=en-US |archive-date=January 20, 2022 |archive-url=https://web.archive.org/web/20220120152323/https://www.upcomer.com/activision-blizzard-workers-cautiously-optimistic-after-microsoft-acquisition/ |url-status=live}} A report by Business Insider suggested several Microsoft employees have raised their concern on the deal with respect to the sexual harassment scandals and Activision Blizzard workplace culture, hoping for "concrete steps to make sure we aren't introducing a dangerous and unwelcome culture." On January 19, 2022, World Bank president David Malpass criticized the acquisition, contrasting the acquisition price with the smaller amount of bond financing available to developing countries during the COVID-19 pandemic.{{Cite news |last=Lawder |first=David |date=2022-01-20 |title=World Bank chief takes swipe at Microsoft's $69 bln gaming deal as poor countries struggle |language=en |work=Reuters |url=https://www.reuters.com/markets/us/world-bank-chief-takes-swipe-microsofts-69-bln-gaming-deal-poor-countries-2022-01-19/ |access-date=2022-01-20 |archive-date=January 20, 2022 |archive-url=https://web.archive.org/web/20220120142841/https://www.reuters.com/markets/us/world-bank-chief-takes-swipe-microsofts-69-bln-gaming-deal-poor-countries-2022-01-19/ |url-status=live}} After Sony had stated that they expect Microsoft to honor all of Activision Blizzard's publishing agreements for multiplatform games, Spencer and Microsoft president Brad Smith reassured that Microsoft will continue these existing agreements and expressed their desire to keep Call of Duty and other popular Activision Blizzard games on PlayStation beyond the terms of these agreements, as well as explore the opportunity to bring these games to the Nintendo consoles.{{Cite web |date=2022-01-21 |last=Young |first=Georgina |title=Microsoft confirms its intent to keep 'Call Of Duty' on PlayStation |url=https://www.nme.com/en_asia/news/gaming-news/microsoft-confirms-its-intent-to-keep-call-of-duty-on-playstation-3143530 |access-date=2022-01-21 |website=NME |language=en |archive-date=January 21, 2022 |archive-url=https://web.archive.org/web/20220121233240/https://www.nme.com/en_asia/news/gaming-news/microsoft-confirms-its-intent-to-keep-call-of-duty-on-playstation-3143530 |url-status=live}}{{cite web |last=Jie |first=Yang |date=January 20, 2022 |title=Sony Expects Microsoft to Keep Activision Games Multiplatform |url=https://www.wsj.com/articles/sony-expects-microsoft-to-keep-activision-games-multiplatform-11642665939 |work=The Wall Street Journal |accessdate=January 20, 2022 |archiveurl=https://archive.today/20220120103224/https://www.wsj.com/articles/sony-expects-microsoft-to-keep-activision-games-multiplatform-11642665939 |archivedate=January 20, 2022 |url-status=live}}{{cite web |url=https://www.ign.com/articles/micosoft-activision-blizzard-call-of-duty-playstation-sony-nintendo-contracts |title=Microsoft Confirms Activision Blizzard Will Release Games on PlayStation 'Beyond Existing Agreements' |first=Joe |last=Skrebels |date=February 9, 2022 |accessdate=February 9, 2022 |work=IGN}}{{cite web |url=https://www.videogameschronicle.com/news/microsofts-president-says-we-want-to-bring-call-of-duty-to-switch/ |title=Microsoft's president says 'we want to bring Call of Duty to Switch' |first=Chris |last=Scullion |date=February 10, 2022 |accessdate=February 10, 2022 |work=Video Games Chronicle}}
Activision Blizzard's shareholders approved of the acquisition near-unanimously in April 2022.{{cite web |url=https://www.reuters.com/technology/activision-blizzard-shareholders-approve-687-bln-microsoft-deal-2022-04-28/ |title=Activision Blizzard shareholders approve $68.7 bln Microsoft deal |work=Reuters |date=April 28, 2022 |accessdate=April 29, 2022}} In the United States, the acquisition was reviewed by the Federal Trade Commission (FTC) rather than traditionally by the U.S. Department of Justice, as the agency had raised more concerns over mergers and acquisitions in the Big Tech sector in the last decade.{{cite web |url=https://www.bloomberg.com/news/articles/2022-02-01/microsoft-deal-for-activision-to-be-reviewed-by-ftc-in-u-s |title=Microsoft Deal for Activision to Be Reviewed by FTC in U.S. |first=David |last=McLaughlin |date=February 1, 2022 |accessdate=February 1, 2022 |work=Bloomberg News |archiveurl=https://archive.today/20220201090604/https://www.bloomberg.com/news/articles/2022-02-01/microsoft-deal-for-activision-to-be-reviewed-by-ftc-in-u-s?srnd=premium-europe&sref=y3YMCJ4e |archivedate=February 1, 2022 |url-status=live }} U.S. Senators Elizabeth Warren, Bernie Sanders, Sheldon Whitehouse, and Cory Booker expressed their concerns about the merger to the FTC as part of the FTC's investigation, saying that both companies have "failed to protect the rights and dignity of their workers" and that the merger should be opposed if "the transaction is likely to enhance monopsony power and worsen the negotiating position between workers and the parties."{{cite web |url=https://www.polygon.com/23006125/microsoft-activision-blizzard-ftc-review-us-senators |title=Senators push for FTC review of Microsoft and Activision's $69B deal |first=Nicole |last=Carpenter |date=April 1, 2022 |accessdate=April 1, 2022 |work=Polygon}} In addition, the U.S. Securities and Exchange Commission (SEC) reviewed potential claims that investors close to Kotick used insider trading prior to the acquisition announcement;{{cite web |url=https://www.wsj.com/articles/u-s-probes-options-trade-that-gained-on-microsoft-activision-deal-11646787000 |title=U.S. Probes Trade by Barry Diller, David Geffen Before Big Merger |first1=Dave |last1=Michaels |first2=Jeffrey |last2=Trachtenberg |date=March 8, 2022 |accessdate=April 16, 2022 |work=The Wall Street Journal}} Activision Blizzard said they would fully cooperate with the SEC's review.{{cite web |url=https://www.nytimes.com/2022/04/15/technology/activision-sec-insider-trading.html |title=Activision tells regulators it will cooperate with insider trading investigation. |first=Kellen |last=Browning |date=April 15, 2022 |accessdate=April 16, 2022 |work=The New York Times}}
The New York City Employees' Retirement System, which are shareholders of Activision Blizzard, sued the company in April 2022, arguing that the company had made the acquisition deal quickly with Microsoft as to try to cover up the misdoings of Kotick that had been uncovered as part of the ongoing DCEH lawsuit and escape any liability.{{cite web |url=https://www.axios.com/2022/05/04/new-york-city-sues-activision |title=New York City sues Activision, targeting CEO Bobby Kotick |first=Stephen |last=Totilo |date=May 4, 2022 |accessdate=May 4, 2022 |work=Axios}}
Senior executives Lulu Cheng Meservey and Kerry Carr joined the Activision Blizzard board of directors in 2022.{{cite web |last1=King |first1=Hope |title=Scoop: Activision Blizzard adding 2 women to its board |url=https://www.axios.com/2022/04/21/activision-blizzard-board-women-lulu-cheng-meservey |website=AXIOS |date=April 21, 2022 |access-date=16 August 2022}}
On April 26, 2023, the United Kingdom's Competition and Markets Authority (CMA) blocked Microsoft's acquisition of Activision Blizzard, claiming that it would lead to "reduced innovation and less choice for UK gamers over the years to come."{{cite web |title=Scoop: UK blocks Microsoft takeover of Activision Blizzard |url=https://edition.cnn.com/2023/04/26/tech/microsoft-activision-blizzard/index.html |website=CNN |date=April 26, 2023 |access-date=28 April 2023}} The same day, Microsoft announced plans to appeal this ruling.{{cite web |title=Scoop: Microsoft vows to appeal as the UK regulator blocks its acquisition of Activision Blizzard|url= https://www.gamesindustry.biz/breaking-microsoft-vows-to-appeal-as-the-uk-regulator-blocks-its-acquisition-of-activision-blizzard |website=GamesIndustry |date=April 26, 2023| access-date=28 April 2023}}
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