Microsoft to acquire Activision Blizzard, video game company accused of creating a 'breeding ground for harassment'
Activision Blizzard, the famed video game company that has been grappling with allegations of sexual harassment, is set to be acquired by Microsoft.
Microsoft confirmed Tuesday it will acquire the publisher behind hit games like World of Warcraft, Call of Duty, and Overwatch in a deal valued at $68.7 billion. Activision Blizzard CEO Bobby Kotick will continue in his role at the head of the company, the announcement said.
The acquisition comes after Activision Blizzard was hit with a bombshell lawsuit by the California Department of Fair Employment and Housing last year, which alleged the company created a "breeding ground for harassment and discrimination." According to the lawsuit, female employees "almost universally confirmed" that working for Activision Blizzard "was akin to working in a frat house, which invariably involved male employees drinking and subjecting female employees to sexual harassment with no repercussion."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Activision Blizzard denied the lawsuit's claims, but in July, current and former employees criticized the company's response, which they said "creates a company atmosphere that disbelieves victims." In November, The Wall Street Journal reported that Kotick knew about sexual misconduct allegations at the company for years. Activision Blizzard has fired or pushed out over three dozen employees since July, according to the Journal.
Microsoft said Tuesday the acquisition of Activision Blizzard will help bolster the portfolio of games offered on Game Pass, the Netflix-like subscription service that has become a major priority for the company. In 2020, Microsoft announced it would acquire Bethesda, the company behind the hit Fallout and The Elder Scrolls games, for $7.5 billion in what was at the time its largest video game purchase ever.
Microsoft noted that after the Activision Blizzard deal closes, it will "become the world's third-largest gaming company by revenue" after Tencent and Sony. Microsoft Gaming CEO Phil Spencer said, "We're looking forward to extending our culture of proactive inclusion to the great teams across Activision Blizzard."
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Create an account with the same email registered to your subscription to unlock access.
Brendan worked as a culture writer at The Week from 2018 to 2023, covering the entertainment industry, including film reviews, television recaps, awards season, the box office, major movie franchises and Hollywood gossip. He has written about film and television for outlets including Bloody Disgusting, Showbiz Cheat Sheet, Heavy and The Celebrity Cafe.
-
Government shutdown looming? Blame the border
Talking Points Democrats and Republicans say funding for immigration enforcement is the budget battle's latest sticking point. That's about all they agree on.
By Rafi Schwartz, The Week US Published
-
'Conservatives have not limited their attack on reproductive rights to the US'
Instant Opinion Opinion, comment and editorials of the day
By Harold Maass, The Week US Published
-
Housing costs: the root of US economic malaise?
speed read Many voters are troubled by the housing affordability crisis
By Peter Weber, The Week US Published
-
Housing costs: the root of US economic malaise?
speed read Many voters are troubled by the housing affordability crisis
By Peter Weber, The Week US Published
-
Feds cap credit card late fees at $8
speed read The Consumer Financial Protection Bureau finalized a rule to save households an estimated $10 billion a year
By Peter Weber, The Week US Published
-
Immigration helped the US economy outpace peers
speed read The U.S. economy grew at an annualized rate of 3.2% last quarter
By Peter Weber, The Week US Published
-
4-day workweek gets boost from UK study
Speed Read Following a six-month trial, the majority of participating British companies are still using the truncated schedule
By Peter Weber, The Week US Published
-
US sues to block Kroger-Albertsons merger
Speed Read The Federal Trade Commission sued to block the $24.6 billion merger between the grocery giants
By Peter Weber, The Week US Published
-
Nvidia sees historic stock rise on AI chips success
Speed Read U.S. chipmaker Nvidia achieved the biggest one-day increase in value of any company in history
By Peter Weber, The Week US Published
-
New York may seize Trump's assets for $450M penalty
Speed Read The former president likely owes $600 million from two civil judgments in New York
By Peter Weber, The Week US Published
-
Capital One to buy Discover for $35B
Speed Read The deal, if cleared by regulators, would create the biggest credit card lender in the country
By Peter Weber, The Week US Published