Microsoft shocked the video game industry when the company acquired Activision Blizzard for 68.7 billion, the biggest deal in video game history. What made the move even more surprising was that the move came after Activision Blizzard’s multiple lawsuits regarding allegations of sexual harassment and workplace misconduct. Today, Several U.S. senators including Elizabeth Warren, Bernie Sanders, Cory Booker, and Sheldon Whitehouse wrote a letter to the FTC. They are worried that the acquisition will cause the problems that the employees have had to deal with to be difficult to solve or forgotten entirely.
The letter says “Workers at Activision Blizzard, following years of rampant sexual misconduct and discrimination and unfair labor practices, have led calls for greater transparency and accountability in the gaming industry, and we are deeply concerned that this acquisition could further disenfranchise these workers and prevent their voices from being heard. As this proposed deal moves forward in the review process, the Federal Trade Commission (FTC) should assess whether the ways in which these companies have failed to protect the rights and dignity of their workers are driven by monopsony power or amount to anticompetitive harms in our labor market, and if so, if the merger will exacerbate these problems.”
The senators also are concerned about current Activision Blizzard CEO Bobby Kotick will not be held accountable for what has transpired at the company. Once the deal is finalized, he is set to remain as CEO until the deal closes next year in 2023. Following the state of California’s lawsuit against Activision Blizzard, it was revealed that Bobby Kotick was aware of the alleged sexual harassment and workplace misconduct. It was also reported that he was allegedly a perpetrator and attempted to minimize the totality and severity of the situation for both the employees and the board of directors.
“This lack of accountability, despite shareholders, employees, and the public calling for Kotick to be held responsible for the culture he created, would be an unacceptable result of the proposed Microsoft acquisition,” the senators said.
Speaking to Windows Central, Activision Blizzard said “No additional special compensation arrangements for Mr. Kotick were entered into in connection with the transaction. Mr. Kotick’s base salary has been reduced to California’s minimum annual salary (which is approximately $62,500 for 2022), and he will not be awarded any bonuses or equity grants until the Workplace Responsibility Committee of the Activision Blizzard Board of Directors has determined that Activision Blizzard has made appropriate progress toward achievement of the transformational gender-related goals and other commitments described in such announcement.”
“The company is committed to a safe and equitable working environment for all employees and has invested significant resources to ensure we’re creating a model for the industry,” Activision Blizzard said regarding the letter. “The transaction between Microsoft and Activision Blizzard will not interrupt any of the actions the Activision Blizzard’s leadership team has implemented throughout 2021 and is continuing to implement in 2022 with regards to improving our workplace. Activision Blizzard’s leadership team has discussed the company’s goals at length with Microsoft, and Microsoft has reviewed the renewed culture commitment and actions Activision Blizzard have done so far, and the efforts they’ve undertaken. Microsoft is supportive of the goals and the work being done. This is a compelling transaction for all stakeholders, including employees.”