Activision CEO Bobby Kotick could see his stock portfolio skyrocket to a value of over $400 million if the proposed merger between Activision and Microsoft goes through, according to the Federal Trade Commission (FTC). Microsoft has made an offer to purchase 100% of Activision stock at a premium price of $95 per share, resulting in a staggering $68.7 billion deal, the largest ever for Microsoft and the biggest acquisition in video game history.
The potential merger has put Activision’s executive management team in line for hefty payouts, with Kotick leading the pack. As the company’s largest executive shareholder, Kotick currently owns 4,296,550 shares. During the recent FTC v Microsoft federal case, Kotick’s share amount was brought up by FTC lawyer Jennifer Fleury. When asked about his stock value, Kotick provided no further clarification, prompting the FTC to comment nothing further.
If the merger were to go ahead at the proposed price of $95 per share, Kotick stands to receive a staggering amount of approximately $408,172,250. Additionally, the company’s annual report filing reveals that Kotick has the right to acquire an additional 2.2 million shares, which could further boost his holdings to nearly 6.5 million shares, worth a total of $617 million.
Microsoft’s move to acquire Activision Blizzard King is driven by its ambitions in mobile gaming and its popular Game Pass service. The proposed deal represents over five times the value of Take-Two’s $12.7 billion Zynga buyout, making it a significant milestone in the gaming industry.
While the potential merger promises financial gains for Activision executives like Kotick, it has also raised concerns among industry experts. Some critics argue that consolidating power in the hands of a few major players, like Microsoft, could limit competition and creativity in the gaming market. Others question the impact on employees and game development studios, as such mergers often result in restructuring and layoffs.
As the FTC scrutinizes the merger proposal, it remains to be seen whether the deal will receive regulatory approval. If approved, it could reshape the gaming landscape, making Microsoft a dominant force in the industry. However, the potential impact on competition and the future of game development will continue to be subjects of debate.
In the meantime, Activision shareholders eagerly await the outcome, with Kotick’s potential windfall stirring discussions about wealth disparity and executive compensation in the gaming sector. As the merger negotiations unfold, all eyes are on the FTC’s decision and the potential consequences for both Activision and the broader gaming industry.
