Microsoft’s potential loss of the ongoing merger with Activision Blizzard could have serious financial consequences. According to CEO Bobby Kotick, Activision Blizzard is set to receive a massive $3 billion “breakup” fee should the deal not go ahead. This revelation comes after UK regulators blocked the merger, citing concerns over the future of cloud gaming.
In a recent interview with CNBC, Kotick acknowledged the $3 billion figure without refuting it, indicating that Activision Blizzard will come out of the arrangement financially unscathed. However, Microsoft would have to foot this hefty bill and lose out on the benefits of the merger. The stakes are high, and time will tell how this situation will play out for both companies.
CNBC recently interviewed Bobby Kotick, CEO of Activision Blizzard, regarding the $3 billion “breakup” fee the company would receive if its merger with Microsoft fell through. While Kotick remains focused on seeing the merger through, it’s clear that the company stands to benefit financially whether the deal goes ahead or not.
However, there are concerns about what this could mean for the workers at Activision Blizzard, as the $3 billion fee pales in comparison to the $69 billion that Microsoft would be paying for the acquisition. Additionally, if the merger doesn’t happen, Kotick would remain as CEO, despite facing criticism for his handling of abuse allegations within the company. Despite calls for his resignation, Kotick appears to be unwilling to relinquish his hold on power.
“If it weren’t to get done…by the end of the year, I think we’ll be sitting on something like $18 billion of cash,” says Kotick. “And…I think if you look at our 30-year history, we have deployed capital for the benefit of our shareholders very well and we’ll continue to do that.”
The future of Bobby Kotick, the embattled CEO of Activision Blizzard, is still up in the air. With the proposed merger with Microsoft still hanging in the balance, it remains unclear whether the tech giant will follow through on rumors that they plan to remove Kotick from his position. Despite numerous allegations of mishandling employee complaints and a call for his resignation by over 1,500 workers, Kotick’s recent re-election to the board of directors suggests that he may yet have the support of his colleagues. If the deal does go ahead, it will be interesting to see whether or not Microsoft chooses to cut ties with the controversial executive.
