Activision Blizzard CEO Bobby Kotick has taken heat for company issues that helped lead to its sale to Microsoft, but he could profit handsomely if the deal goes through.
Kotick could pocket over $500 million from his shares of the video game giant.
- The CEO owns 4.3 million shares, which would be worth $408.5 million at Microsoft’s proposed $95-per-share purchase price. Activision’s stock closed at $78.06 on Monday.
- He also holds an option to purchase an additional 2.2 million shares, which would raise the total value of his equity to over $500 million.
- Kotick, whose compensation was $826,549 in 2021, will receive $14.4 million in severance pay if he’s terminated or quits under certain conditions within a year of the sale of the company.
Activision’s stock plunged 44.7% from its peak in February 2021 to early December due to lawsuits related to sexual harrassment and gender-based wage discrimination, but partly rebounded in January when Microsoft agreed to purchase the company.
Buffett’s Bet
Warren Buffett’s Berkshire Hathaway has been growing its stake in Activision Blizzard in a bet that the sale to Microsoft will be completed. The famed investment house now owns around 9.5% of the “Call of Duty” maker, Buffett told shareholders on Saturday.
The Federal Trade Commission and European Union regulators have been examining the deal on competitiveness grounds, and the Justice Department and Securities and Exchange Commission are investigating three investors for insider trading related to the deal.
