Why did Bobby Kotick resign from Activision? Controversy explored as ex-CEO joins Skydance board

Bobby Kotick has joined the Skydance Board of Directors as an independent director. Skydance formed its new board following the merger of Paramount and Warner Bros. Discovery, bringing in Laurene Powell Jobs, founder and president of Emerson Collective, and Kotick, founder and former CEO of Activision.

Jobs joined as an independent director; former Mattel CEO Ynon Kreiz joined as co-CEO, and former UK Prime Minister Tony Blair joined as a board advisor. David Ellison leads the company as chairman and CEO.

Kotick stepped down as CEO of Activision Blizzard on December 29, 2023, after Microsoft completed its $68.7 billion acquisition of the company in October 2023. This naturally resulted in the phasing out of its CEO.

Additionally, immense pressure from Activision Blizzard's 2021 workplace misconduct controversy created an opportunity for Microsoft to step in and acquire the company.

Continue reading for more details.

What is the controversy related to Bobby Kotick?

Former Activision Blizzard CEO Bobby Kotick’s controversy centers around a toxic workplace culture, systemic sexual misconduct, and his personal handling of harassment and assault allegations across company studios.

According to the 2021 State Lawsuit, the California Department of Fair Employment and Housing (DFEH) sued Activision Blizzard in 2021. The suit accused the Call of Duty maker of fostering a “frat boy” culture where women were paid less than men for similar tasks and faced sexual harassment.

A report in The Wall Street Journal claimed that Bobby Kotick had been aware of multiple reports of the sexual misconduct and discrimination at the company for years, but he never notified the board of directors.

As per a report in The Wall Street Journal, Dan Bunting, co-head of Activision’s Treyarch studio, was accused by a female employee of sexual harassment in 2017. After Blizzard’s HR department and other supervisors demanded his resignation, Bobby Kotick intervened to protect him.

In another incident that took place in July 2018, a former employee at Sledgehammer Games alleged that she had been r*p*d by her male supervisor in 2016 and 2017. Despite the employee’s reporting to Sledgehammer’s HR department, it failed to take action.

Victims reported that Blizzard's HR department failed to keep complaints confidential and dismissed reports because HR staff were close friends with the perpetrators.

Beyond crude jokes and offensive comments, women employees claimed that Blizzard fostered an environment where their work was less valued and their careers overlooked. Also, alcoholism was a major factor, with numerous complaints raised by female employees against their alleged perpetrators.

Subsequently, several women accused Bobby Kotick of mistreatment both inside and outside the company. In some instances, he worked to settle the complaints quickly and quietly. In 2006, one of his assistants complained that he had harassed her, including by threatening in a voicemail to have her killed. The matter was settled out of court. The Activision spokeswoman said:

“Mr. Kotick quickly apologized 16 years ago for the obviously hyperbolic and inappropriate voice mail, and he deeply regrets the exaggeration and tone in his voice mail to this day.”

In 2007, a flight attendant on a private jet he co-owned sued him, claiming the pilot had sexually harassed her and that Kotick fired her after she complained to the other owner. The defendants denied the allegations. The case settled in 2008 for $200,000 to the attendant.

A report in The Guardian said Activision Blizzard shareholders called for Bobby Kotick's resignation. They said that he:

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“…was aware of many incidents of sexual harassment, sexual assault and gender discrimination at Activision Blizzard, but failed either 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.”

Though Kotick initially resisted these calls, the mounting pressure from shareholders and widespread employee walkouts eventually led to his resignation. He officially retired in December 2023, following Microsoft's acquisition of Activision Blizzard.

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