Phil Spencer Approached Activision Blizzard in November Over Possible Acquisition

by
William D’Angelo
, posted 1 day ago / 1,606 Views

Microsoft on January 18 announced its plan to acquire Activision Blizzard in a deal worth $68.7 billion. This is the by far the biggest acquisition in video game and Microsoft history. 

A new SEC filing (reported by CNBC) has provided some details on how the blockbuster deal went down. It reveals that the head of Xbox Phil Spencer approached Activision Blizzard CEO Bobby Kotick on November 19, 2021 if it was possible to have a call with Microsoft CEO Satya Nadella to discuss strategic opportunities between Activision Blizzard and Microsoft.

This is just a few days after it was reported that Activision Blizzard CEO Bobby Kotick knew for years about the sexual misconduct allegations at the company. Following this report Spencer in an email to employees said that Xbox is “evaluating all aspects of our relationship” with Activision Blizzard and he is “disturbed and deeply troubled by the horrific events and actions” at the publisher. What we did not know at the time was his intent to acquire the gaming giant. 

“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 Mr. Nadella the following day. Mr. Kotick agreed to participate in such discussion,” reads the SEC filing.

On November 20, 2021, the call between Microsoft and Activision Blizzard had Nadella indicate his interest in exploring a possible acquisition. 

“In a call on November 20, 2021, between Messrs. Kotick and Nadella, Mr. Nadella indicated that Microsoft was interested in exploring a strategic combination with Activision Blizzard,” reads the report.

Following the call on November 20, there were two months of negotiations between Microsoft and Activision Blizzard. Early in the morning of January 18, 2022 Activision Blizzard and Microsoft executed the merger agreement, then the two issues a joint press release announcing the acquisition.

Phil Spencer earlier this month did say the deal is beyond anything that he has ever done and is aware of the responsibility of a successful transition of the thousands of employees at Activision Blizzard.

Spencer hopes the Activision Blizzard employees feels Microsoft and Xbox is “a long-term place for them where they can do their best work in a supported way.” 

“That’s something well beyond anything I’ve ever done,” Spencer said. “I don’t know that I’m equipped to do it, and the responsibility for that definitely hits home.” He added, “I do not feel like we’re in a position, assuming this deal gets closed, to start to uniquely, on our own, shape policies around video games.”

Microsoft president Brad Smith has said Microsoft is keeping a close eye on Activision Blizzard leadership and how it is handling the harassment claims, so that it can figure out who should remain in power and who should be let go once the deal closes.

It was reported that Kotick would step down once the deal closes and Activision Blizzard is officially part of Microsoft and Xbox. Until the deal is finalized, no one at Microsoft or Activision Blizzard can say anything about future plans. Whether it is if Kotick will step down or what games will become Xbox console exclusives. 

A life-long and avid gamer, William D’Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel dedicated to gaming Let’s Plays and tutorials. You can contact the author at wdangelo@vgchartz.com or on Twitter @TrunksWD.

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