In internal discussions, Activision Blizzard CEO Bobby Kotick addressed the possibility of leaving the company. The Wall Street Journal reported Sunday.
Kotick, whose dismissal is being called for by employee groups and investor representatives, has headed Activision since 1991. A week ago the journal published a report Kotick was aware of multiple allegations of sexual harassment – including alleged rape – that he either failed to mention to his board of directors or otherwise minimized their severity. Activision and its board of directors have questioned this story as “a misleading view by Activision Blizzard and our CEO”.
The journal’s latest story goes that Kotick had a meeting with executives at Blizzard Entertainment on Friday that “stopped short to say he was stepping down”. But when the sexual misconduct, discrimination, and toxic workplace problems that have plagued the company for the past six months could not be “quickly” addressed, he left the option open.
The Journal said it spoke to people familiar with its comments at the meeting.
The California Department of Fair Employment and Housing sued Activision in late July over a pattern of discrimination and harassment against women in the workplace, particularly at Blizzard Entertainment, which joined Activision in 2008 with J. Allen Brack.
Activision then settled a US Equal Employment Opportunity Commission lawsuit for $ 18 million for reasons similar to the California DFEH lawsuit. A shareholder lawsuit filed in August also alleges that the company’s negligent management harmed the share price. The US Securities and Exchange Commission is also investigating the company’s handling of allegations of discrimination, harassment, and sexual misconduct.
Since then, more than 1,000 Activision Blizzard employees have signed a petition asking them to step down from Kotick. On Wednesday, a group of shareholders proposed the resignation of Kotick and two other Activision Blizzard board members, Brian Kelly and Robert Morgado, by December 31st.
The Wall Street Journal also reported that Truist Securities also called for a change of CEO on Friday after a week of multiple analysts downgrading the company’s stock. To this end, the top managers of PlayStation and Xbox criticize Activision in a note to their own employees, with Xbox boss Phil Spencer saying that he evaluates “all aspects of our relationship with Activision Blizzard”.
[Disclosure: Casey Wasserman is on the board of directors for Activision Blizzard as well as the board of directors of Vox Media, Polygon’s parent company.]
