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[Lunatic_Gamer]

Microsoft started acquisition talks with Activision Blizzard just days after the publication of a report alleging that its CEO Bobby Kotick had known for years about allegations of sexual misconduct at the company.

That’s according to a regulatory filing published on Friday, which details the negotiations that eventually led to Microsoft’s $68.7bn agreement to acquire the Call of Duty publisher.

As noted by CNBC, the timing of the conversations appears to be opportunistic, since the WSJ report caused huge reputational damage to Activision Blizzard’s CEO and sent its stock tumbling 11%.

The documents claim that the first conversations between Kotick and Xbox head Phil Spencer happened on November 19.

That’s three days after a Wall Street Journal report alleged that Kotick had been accused of mistreatment by women at the company, including leaving a voicemail in 2006 in which he threatened to have an assistant killed, and withheld information from the company’s board relating to sexual misconduct allegations.

It’s also a day after Spencer is claimed to have addressed the issue internally, telling staff in an email that he was “evaluating all aspects of our relationship with Activision Blizzard and making ongoing proactive adjustments”.

However, a day later Spencer is said to have planted the seeds of Microsoft’s acquisition of Activision Blizzard.

“On November 19, 2021, in the course of a conversation on a different topic between Mr. Spencer and Mr. Kotick, Mr. Spencer raised that Microsoft was interested in discussing strategic opportunities between Activision Blizzard and Microsoft and asked whether it would be possible to have a call with [Microsoft CEO] Mr. Nadella the following day,” the regulatory filing states.

After making Activision Blizzard’s board of directors aware of the conversation, Kotick is said to have spoken to Microsoft CEO Satya Nadella the following day, November 20, where Nadella indicated that Microsoft was interested in acquiring the company.

The full regulatory filing details the two months of negotiations that followed, eventually concluding with the deal’s announcement on January 18. Bobby Kotick reached out to several other companies before the announcement, the filing claims, but said companies are not named.

Phil Spencer reportedly started Activision talks days after explosive Bobby Kotick report | VGC

New filings suggest talks started a day after Spencer said he would evaluate relationship…

www.videogameschronicle.com

 

[Tiamat2san]

Clever.
Spencer is a smart guy and a good businessman.

 

[James Sawyer Ford]

Phil was so deeply disturbed by Activision he had to go buy it

 

[Big Baller]

Phil waiting in the cut like

 

[BennyBlanco]

So he was typing up that written statement throwing them under the bus around the same time he was typing up a proposal for nadella. Good shit.

 

[Batiman]

Genius Phil

 

[DenchDeckard]

Phil is the fucking godfather.

 

[MadPanda]

I read the whole part in the SEC filling about this and it was an interesting read. Microsoft pushed hard for it, ATVI was courting other companies but they weren't willing to match Microsoft. Initial offer was 80 USD per share and they ended up on 95.

 

[FrankWza]

He believes in degeneration

 

[Rusty Shackelford]

Buying Acti/Blizzard was probably the only way to get Kotick out, which everyone wants. This is probably why most of the games are staying multiplat instead of going exclusive. Microsoft is kinda doing everyone a solid with this move.

It's like they're kicking Kotick out of the industry without kicking him out.

 

[CrashNBurn_281]

Shrewd, but smart.

 

[Victor Omega]

Big dick Phil
Base Phil
Big Boss Phil
Uncle Phil

 

[ChuckeRearmed]

The report itself was fascinating. So many actors were involed, so many meetings.

But the short talks for the biggest deal in gaming and Microsoft history is crazy.

 

[Zeroing]

 

[A.Romero]

What surprises me is normally talking shit about a company you are planning to acquire is an strategy to drive down the price but still Microsoft paid above that value. I wonder if the purchase would have been possible even if Kotick wasn't a PoS.

 

[GreatnessRD]

What surprises me is normally talking shit about a company you are planning to acquire is an strategy to drive down the price but still Microsoft paid above that value. I wonder if the purchase would have been possible even if Kotick wasn't a PoS.

I think so, but it probably would've cost them even more.

 

[adamsapple]

Echoing what I said in the other thread.

November to January seems like a ridiculously fast turnaround for a 70 billion dollar deal.

 

[sainraja]

I was reading an article earlier this morning but that one stated it was Satya Nadella who brought up the acquisition conversation. Then it was Kotick who went to others and then I suppose came back to MS obviously given they settled.

 

[GHG]

It was all too convenient, especially when you consider the timing of this man's arrival:

Activision Blizzard | Mike Ybarra

Mike Ybarra was named a leader of Blizzard Entertainment in August 2021 and has served as its President since February 2022. In this role, Mike oversees development and operations.

www.activisionblizzard.com

Makes me wanna...

 

[S0ULZB0URNE]

Vultures

 

[oldergamer]

It was all too convenient, especially when you consider the timing of this man's arrival:

Activision Blizzard | Mike Ybarra

Mike Ybarra was named a leader of Blizzard Entertainment in August 2021 and has served as its President since February 2022. In this role, Mike oversees development and operations.

www.activisionblizzard.com

Makes me wanna...

Stupid post for the win? no.. its a total loss.

 

[kingfey]

He believes in degeneration

 

[kingfey]

It was all too convenient, especially when you consider the timing of this man's arrival:

Activision Blizzard | Mike Ybarra

Mike Ybarra was named a leader of Blizzard Entertainment in August 2021 and has served as its President since February 2022. In this role, Mike oversees development and operations.

www.activisionblizzard.com

Makes me wanna...

He was the perfect undercover man.

 

[kingfey]

What surprises me is normally talking shit about a company you are planning to acquire is an strategy to drive down the price but still Microsoft paid above that value. I wonder if the purchase would have been possible even if Kotick wasn't a PoS.

Considering their work with the call of duty yearly releases, it was a matter of time, before they run out of money.
They made a wise choice selling it early. Because if they waited a few year longer, they would have been cheap around $30b. Just like how bethesda was cheap at $7.5b.

 

[A.Romero]

Considering their work with the call of duty yearly releases, it was a matter of time, before they run out of money.
They made a wise choice selling it early. Because if they waited a few year longer, they would have been cheap around $30b. Just like how bethesda was cheap at $7.5b.

Was Activision having money problems or you propose that the cod cow will dry up in a few years?

 

[SJRB]

Our boy Phill playing 4D chess.

 

[Punished Miku]

Spencer is a sniper. Saw an opening.

 

[kingfey]

Was Activision having money problems or you propose that the cod cow will dry up in a few years?

Yes, considering the wow decline, and cod yearly release fatigue. Not to mention, most of their studios were helping COD, meaning other games were having production issues.

 

[vj27]

So he was typing up that written statement throwing them under the bus around the same time he was typing up a proposal for nadella. Good shit.

4D chess spence

 

[mansoor1980]

real life agent smith

 

[The_Mike]

He believes in degeneration

Sounds like you'd fit right in.

 

[HeisenbergFX4]

It was all too convenient, especially when you consider the timing of this man's arrival:

Activision Blizzard | Mike Ybarra

Mike Ybarra was named a leader of Blizzard Entertainment in August 2021 and has served as its President since February 2022. In this role, Mike oversees development and operations.

www.activisionblizzard.com

Makes me wanna...

Especially considering Mike wanted COD this new gen Xbox in some sort of exclusivity

 

[PJX]

But armchair business men told us that these deals take months to do.

 

[SenjutsuSage]

Yes, considering the wow decline, and cod yearly release fatigue. Not to mention, most of their studios were helping COD, meaning other games were having production issues.

to stop all that? Just trying to get an idea of which folks you consider vultures?

They were not having money problems...

About $7 billion or so of this purchase is including Activision's own money on hand. Microsoft really spent around $61-$63 billion. They also had record revenue if I'm not mistaken.

 

[yurinka]

Phil was so deeply disturbed by Activision he had to go buy it

Sure. Specially by Kotick, who continues as CEO and now is Billions richer.

 

[Dick Jones]

It was all too convenient, especially when you consider the timing of this man's arrival:

Activision Blizzard | Mike Ybarra

Mike Ybarra was named a leader of Blizzard Entertainment in August 2021 and has served as its President since February 2022. In this role, Mike oversees development and operations.

www.activisionblizzard.com

Makes me wanna...

Outside gaming but I'm convinced Stephen Elop intentionally tanked Nokia so Microsoft could buy it cheap.

Here I dont think Ybarra is that unethical to fuck over Activision stakeholders. This is a coincidence.

 

[GhostOfTsu]

Phil and Nadella

 

[ManaByte]

 

[Larogue]

 

[Fbh]

"I'm saddened and sickened............about these share prices not getting any lower, am I right guys?"

 

[kingfey]

to stop all that? Just trying to get an idea of which folks you consider vultures?

They were not having money problems...

About $7 billion or so of this purchase is including Activision's own money on hand. Microsoft really spent around $61-$63 billion. They also had record revenue if I'm not mistaken.

To put it simply, putting your eggs in 1 basket will decrease the value of your stock.
Activision is only worth their stock, which depends on the market. Once the marketable products decreases its worth, the value of the stock decreases.

Then you have the studio section, which are currently focusing on call of duty. That is alot of money lost on a single franchise. Considering the flop of vanguard. Other projects are losing money, because the entire focus is on call of duty.

Activision doesnt have unlimited money. The only big profit is their mobile division. If they continue these practices, their company would face financial risks in the future.

 

[SenjutsuSage]

To put it simply, putting your eggs in 1 basket will decrease the value of your stock.
Activision is only worth their stock, which depends on the market. Once the marketable products decreases its worth, the value of the stock decreases.

Then you have the studio section, which are currently focusing on call of duty. That is alot of money lost on a single franchise. Considering the flop of vanguard. Other projects are losing money, because the entire focus is on call of duty.

Activision doesnt have unlimited money. The only big profit is their mobile division. If they continue these practices, their company would face financial risks in the future.

Dude, Diablo IV when it drops is a guaranteed hit. Modern Warfare 2 is a guaranteed hit, sequel to the best selling COD game of all time. COD Warzone 2 will be a hit. Overwatch 2 will be a hit, and apparently comes with more of a true campaign. They quite literally have nothing to worry about. Activision was in no trouble.

Vanguard being a so called "flop" still sold better than anything else for the entire year.

NPD: The top 20 best-selling games of 2021 in the U.S.

Here are the best-selling games of 2021 in the United States as well as for the Switch, Xbox, and PlayStation 5.

venturebeat.com

Black Ops: Cold War came in at #2.

Let's not exaggerate now. Activision and their overall business is perfectly fine. Blizzard is also making a new IP. They were a very financially healthy publisher, more financially healthy publishers.

Sony's Gaming division brought in $24.87 billion in revenue and $2.63 billion in operating income.



Activision had $8.8 billion in revenue and $3.25 billion in operating income. That's more profit than the Playstation business. Activision was in no kind of trouble. They had a major PR problem, not a financial problem. They are doing perfectly fine. Microsoft if the acquisition is approved is getting one of the most financially strong and profitable videogame publishers in the world.

Refer to Page 10.

https://investor.activision.com/static-files/92ffd159-f3ab-4f26-8dca-bab73cb457f6

 

[kingfey]

Dude, Diablo IV when it drops is a guaranteed hit. Modern Warfare 2 is a guaranteed hit, sequel to the best selling COD game of all time. COD Warzone 2 will be a hit. Overwatch 2 will be a hit, and apparently comes with more of a true campaign. They quite literally have nothing to worry about. Activision was in no trouble.

Vanguard being a so called "flop" still sold better than anything else for the entire year.

NPD: The top 20 best-selling games of 2021 in the U.S.

Here are the best-selling games of 2021 in the United States as well as for the Switch, Xbox, and PlayStation 5.

venturebeat.com

Black Ops: Cold War came in at #2.

Let's not exaggerate now. Activision and their overall business is perfectly fine. Blizzard is also making a new IP. They were a very financially healthy publisher, more financially healthy publishers.

Sony's Gaming division brought in $24.87 billion in revenue and $2.63 billion in operating income.



Activision had $8.8 billion in revenue and $3.25 billion in operating income. That's more profit than the Playstation business. Activision was in no kind of trouble. They had a major PR problem, not a financial problem. They are doing perfectly fine. Microsoft if the acquisition is approved is getting one of the most financially strong and profitable videogame publishers in the world.

Refer to Page 10.

https://investor.activision.com/static-files/92ffd159-f3ab-4f26-8dca-bab73cb457f6

Activision confirms all its core studios are now working on Call of Duty | VGC

Some 2,000 employees are thought to be developing the series…

www.videogameschronicle.com

I dont know man, that sounds desperate, when all your studios is working on 1 franchise.
Then you got the recent track shit of releases.
Most of their revenue as I pointed comes from their mobile division. King and COD mobile brings them alot of money. Then you got the short term benifits from mtx sales. In long term, these are not financial stable.

Also, revenue=/=profits. Revenue is the money you generate, profits is the money you get after the revenue expenses is paid. SIE made $23b revenue, yet only made $3b profits.

Activision main bread and butter right now is COD, and candy crush. There is a limit to how far these IPs will take them. WOW was big, but now its getting thin and thin. Especially with other dandies like ff14 in the play.

 

[SenjutsuSage]

Activision confirms all its core studios are now working on Call of Duty | VGC

Some 2,000 employees are thought to be developing the series…

www.videogameschronicle.com

I dont know man, that sounds desperate, when all your studios is working on 1 franchise.
Then you got the recent track shit of releases.
Most of their revenue as I pointed comes from their mobile division. King and COD mobile brings them alot of money. Then you got the short term benifits from mtx sales. In long term, these are not financial stable.

Also, revenue=/=profits. Revenue is the money you generate, profits is the money you get after the revenue expenses is paid. SIE made $23b revenue, yet only made $3b profits.

Activision main bread and butter right now is COD, and candy crush. There is a limit to how far these IPs will take them. WOW was big, but now its getting thin and thin. Especially with other dandies like ff14 in the play.

They're not all working on a single franchise. That was the case inside Activision. Blizzard is separate, and their studios are working on different things. You have any idea the kind of boost World of Warcraft can get by being added to Game Pass, or by making it so that a WoW subscription automatically gets you Game Pass Ultimate? Blizzard is working on a new survival IP, confirmed already. They're making Diablo 4 and Overwatch 2. How the heck is that one ip?

You seem to be ignoring the fact that more freedom would be given to some of these studios outside of the main ones that have to work on COD.

Where are you getting this nonsense that there is a limit to how far COD will take them? COD has been the single best selling game the last 13 years straight. The #1 and #2 best selling games of last year are both COD titles, best selling one being the horribly received Vanguard. Seems like you're desperately out to downplay how successful their franchises are because Microsoft is acquiring them?

The financials speak for themselves. Stop making up doom and gloom scenarios that don't square with reality. Warzone isn't suddenly going to stop being successful. Modern Warfare 2 will be a huge success, just like the previous game.

 

[kingfey]

They're not all working on a single franchise. That was the case inside Activision. Blizzard is separate, and their studios are working on different things. You have any idea the kind of boost World of Warcraft can get by being added to Game Pass, or by making it so that a WoW subscription automatically gets you Game Pass Ultimate? Blizzard is working on a new survival IP, confirmed already. They're making Diablo 4 and Overwatch 2. How the heck is that one ip?

You seem to be ignoring the fact that more freedom would be given to some of these studios outside of the main ones that have to work on COD.

Where are you getting this nonsense that there is a limit to how far COD will take them? COD has been the single best selling game the last 13 years straight. The #1 and #2 best selling games of last year are both COD titles, best selling one being the horribly received Vanguard. Seems like you're desperately out to downplay how successful their franchises are because Microsoft is acquiring them?

The financials speak for themselves. Stop making up doom and gloom scenarios that don't square with reality. Warzone isn't suddenly going to stop being successful. Modern Warfare 2 will be a huge success, just like the previous game.

Read the main topic. No one is talking about MS buying them. This is before MS buy out.

 

[SenjutsuSage]

Outside gaming but I'm convinced Stephen Elop intentionally tanked Nokia so Microsoft could buy it cheap.

Here I dont think Ybarra is that unethical to fuck over Activision stakeholders. This is a coincidence.

Mike has no such power as the President of Blizzard Entertainment.

 

[SenjutsuSage]

Read the main topic. No one is talking about MS buying them. This is before MS buy out.

Activision wasn't in any financial trouble whether Microsoft bough them or not. And, yes, you are trying to downplay the success and financial health of easily one of the most successful game publishers in all of gaming.

Let's not try to dance around what you're doing, and why you're trying so desperately to do it. The numbers speak for themselves. Activision brought in more profit than even Playstation during Playstation's most successful year in history. Sorry, you can't downplay that Activision, scandal or not, would have been just fine even if Microsoft never announced the purchase.

 

[nikolino840]

What surprises me is normally talking shit about a company you are planning to acquire is an strategy to drive down the price but still Microsoft paid above that value. I wonder if the purchase would have been possible even if Kotick wasn't a PoS.

What should have said?
"I love the kotick's leadership and i hope more girls commit suicide! "

 

[kingfey]

Activision wasn't in any financial trouble whether Microsoft bough them or not. And, yes, you are trying to downplay the success and financial health of easily one of the most successful game publishers in all of gaming.

Let's not try to dance around what you're doing, and why you're trying so desperately to do it. The numbers speak for themselves. Activision brought in more profit than even Playstation during Playstation's most successful year in history. Sorry, you can't downplay that Activision, scandal or not, would have been just fine even if Microsoft never announced the purchase.

They are so financial successful, that they went full in on call of duty.
And for the last time, revenue=/=profit.

 

[lh032]

Lets hope Microsoft actually fix the sexual misconduct and other issues in Activision.