The American gaming corporation Activision Blizzard is said to have transitioned from a video game developer to an entertainment company, while Sony has been trying to provide the best possible content for gamers. Both companies are currently facing some major challenges in their industry which could really hurt them if they keep going at it. What do you think Kotick meant by his statement? What will happen next with these two companies?
The rope around Activision Blizzard CEO Bobby Kotick’s neck is tightening, as we revealed yesterday. Shareholders are increasingly turning their backs on him. Simultaneously, Sony Interactive Entertainment CEO Jim Ryan has talked to his workers, revealing how uneasy the PlayStation distributor is about the situation at the partner firm.
Employees are not the only ones calling for Activision Blizzard CEO Bobby Kotick’s departure; a large number of the company’s shareholders feel the senior leader has shown inadequate to manage the issue.
“Contrary to previous company statements, CEO Bobby Kotick was aware of many incidents of sexual harassment, sexual assault, and gender discrimination at Activision Blizzard but failed to ensure that the executives and managers responsible were terminated or to recognize and address the systematic nature of the company’s hostile workplace culture,” according to the letter from the group, which owns more than 4.8 million shares of the industry giant, as reported by The Washington Post.
Those who want Activision Blizzard’s present CEO fired are pushing for a thorough revamp of the company’s board of directors. SOC Investment Group is leading a shareholder group that wants Brian Kelly and Robert Morgado out before the end of the year. What happens if they don’t? The group claims in a letter obtained by The Washington Post that they will vote against the directors’ re-election in June and will lobby for other shareholders to join them in their opposition.
Bobby Kotick is beaming.
“It’s evident, with the recent disclosures, that the present leadership has consistently failed to maintain a safe workplace – a fundamental function of their job,” says Dieter Waizenegger, CEO of SOC, in an interview with the US daily. “Activision Blizzard need a new CEO, board chair, and lead independent director with the knowledge, talents, and commitment to genuinely transform the company’s culture. He adds, “We definitely need a reset button on the board.”
Despite staff demonstrations against Bobby Kotick’s hiring yesterday, the board reiterated its support for him only a few hours ago. The company’s shares was down 3% on the stock market yesterday afternoon, after a 6.09 percent drop the day before.
Sony is concerned.
Meanwhile, Kotick himself stepped out, defending himself and noting his reputation: “Anyone who questions my desire to create a healthier, more inclusive workplace doesn’t realize how important this is to me,” stated Activision Blizzard’s CEO.
But that wasn’t enough for Sony Interactive Entertainment CEO Jim Ryan, who called Activision Blizzard after reading the WSJ piece, according to Bloomberg’s Jason Schreier. Employees were emailed by Jim Ryan, who expressed his dissatisfaction with Activision Blizzard’s reaction to the recent charges.
Jim Ryan
“We quickly contacted Activision after the story was published to express our profound concern and inquire about their plans to address the concerns mentioned in the article,” Ryan said. He stated, “We do not feel their declarations of reaction adequately address the matter.”
Ryan and his team were “disappointed and simply astonished” to see that Activision “had not done enough to address a deep-seated culture of discrimination and harassment,” according to the email.
The worries of Jim Ryan and the PlayStation team added to Bobby Kotick’s already precarious situation. With various collaborations, Sony has become one of Activision Blizzard’s closest friends, including marketing collaboration, exclusive access to huge games like Call of Duty and Destiny, platform and game package partnerships, and special editions of Sony’s console blockbusters.
The Washington Post and Bloomberg are the sources for this information.
