Activision CEO Bobby Kotick will earn $185 million if the Microsoft merger happens.
If Microsoft buys Activision-Blizzard, Activision’s CEO has the potential to make a substantial fortune from this sale.
How much will Activision CEO earn?
Microsoft sacrificed 68.7 Billion dollars to buy Activision Blizzard, aiming to reach its desired position in the game industry. However, as the CMA in the UK did not allow this merger, the acquisition is on the sidelines for now.
First of all, let’s explain what the CMA’s decision means to clear up some questions. Although this merger was accepted in many countries, the CMA did not approve this merger, thinking that it would hurt British players, that competition would disappear and prices would increase.
You might be thinking, “What’s wrong with them? Microsoft gives and takes their money.” However, if this merger is not approved by the competition authority, Activision Blizzard’s products will not be able to be sold in the UK. This means a loss of revenue of approximately $800 million annually for the company. Of course, no company would want to lose such a large market.
On the other hand, if we go back to our main topic, Activision Blizzard CEO currently owns a 100 million dollar share of the company as per his contract. If the acquisition takes place, the price of its shares will increase and it is estimated to reach approximately 185 million dollars.
In a study, Axios investigated how much Activision’s top executives could earn from the merger. According to the firm’s findings, if the merger is approved, Kotick alone could own up to $185 million in equity holdings.
Kotick voiced his support for the merger quite loudly, but regulators were forced to back down with allegations of anti-competitive effects in the cloud and console video games market segments.