I don't see the same issues.

1. It's been reported that Kotick will leave once the acquisition is finalized (i.e. when MS actually owns the company). If and when that doesn't happen, _then_ I'll join in on the criticism. [edit: based on WSJ reporting, not official statement]

2. Kotick is the de-facto ruler of ABK. The acquisition's not happening unless you play ball. If getting ABK under new management and kicking Kotick out requires playing along for a while, then so be it.

3. A big part of MS's investment thesis here seems to be "ABK's assets are worth more than $69B, but their scandals are suppressing their valuation. We can fix the scandals and better realize the IP's true value". MS will be stupid to let ABK keep going without decisively handling the scandals.

> 3. A big part of MS's investment thesis here seems to be "ABK's assets are worth more than $69B, but their scandals are suppressing their valuation. We can fix the scandals and better realize the IP's true value". MS will be stupid to let ABK keep going without decisively handling the scandals.

This is the correct answer.

The intrinsic value of the company is worth more than the share price, which is being pulled down by the scandals and highly negative PR.

Microsoft have bought a bargain.

> 1. It's been reported that Kotick will leave once the acquisition is finalized (i.e. when MS actually owns the company). If and when that doesn't happen, _then_ I'll join in on the criticism.

Do you have a source for that? Not because I disagree but I really want to hope you're right, and I would like evidence to make that belief have some real evidence.

Alas, I now realize this was not in an official statement, but merely reporting by the WSJ. I'll edit my comment to make that clear.

Microsoft might completely upend their entire leadership eventually, but the easiest way to kill a merger between publicly traded companies (in which a majority of shareholders from both companies must approve) is to announce sweeping leadership changes the same day as the acquisition announcement.

> Phil Spencer & Microsoft had to be well into discussions at this point; and it didn't phase them. They didn't stipulate that he would have to leave; they instead leave him in charge of the company post-acquisition.

You're getting worked up for no reason. Maybe wait until Kotick actually sticks around before the outage?

I think it's a lot more likely that the culture gets overhauled under MS than without an acquisition.

This is likely good for current employees who might otherwise be likely future victims.

Its also possible this is collateral (except it happens first) to building a better company from the ashes. I'll be wrong if this person stays at blizzard after a year. I think they want the IP and brands foremost.

Everything I've read is he's only still in charge until the merger completes. Big sales like this don't happen overnight. ABK is keeping him in charge because MS doesn't own them yet. Once they do, it sounds like it's going to get split up into individual segments directly reporting to MS' gaming CEO.

I am very sure that to get the deal done Microsoft would have had to work with Kotick. I am also very confident that they do not support him and that he will be gone way before the end of the year.

Edit: It seems it's not expected to close until 2023 so maybe it takes MS longer to get him out.

Where is that suicide information from? It's the first time I hear about that. (Not disputing that, just did not see that before anywhere.)

edit: ah the WSJ article

>The board of directors was blindsided by the California lawsuit’s allegations, including that an Activision employee killed herself after a photo of her vagina allegedly was circulated at a company party, according to people familiar with the board.

And here

> But here is where it gets even worse. A former female employee who hasn't been named publicly committed suicide while on a business trip with one of her male supervisors. The unnamed supervisor apparently brought sex toys and lube on their trip, and the state investigators believe this and a previous event where the female in question had a photo of her vagina shared around the office Christmas party led to her taking her own life.

Ugh.

How about chill? The deal isn't even going to be completed until next year, and the news is barely 12 hours old at this point and you're already flaming MS for not tossing Kotick to the curb in an announcement blog post? That's not how reality works buddy.

It's already been announced that Kotick is expected to leave after the transition period. I would be shocked if MS didn't address the culture issues at Activision Blizzard.

You're making far too many assumptions. Perhaps the whole situation played to MSFTs advantage, perhaps him leaving is now baked into the deal.