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Kotick Testifies in Microsoft Deal, Predicts 'Revolt' if Call of Duty Becomes Exclusive

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Activision Blizzard's CEO, Bobby Kotick, stated in a court testimony that making "Call of Duty" exclusive following Microsoft's acquisition could lead to a significant player backlash and potentially harm the game's popularity. Kotick suggested that restricting the blockbuster game to Microsoft's Xbox console might alienate a significant portion of the 100 million people who play it monthly. He believes it's crucial to keep the game accessible across multiple platforms, including consoles, mobile phones, and personal computers. His comments aim to address concerns over the potential limiting of game distribution, a significant factor in the $69 billion acquisition deal's ongoing scrutiny.

Microsoft's CEO, Satya Nadella, was scheduled to provide his testimony following Kotick's. The Federal Trade Commission (FTC) has requested a halt to the acquisition, suggesting the issue be decided in-house. Historically, whichever side lost in federal court usually conceded, ending the in-house process. However, the FTC, under the Biden administration, has been stricter regarding mergers, arguing that the acquisition would give Microsoft exclusive access to Activision games, excluding rivals like Nintendo and Sony Group.

Kotick asserted that Microsoft would have no incentive to limit the distribution of Activision's games, suggesting that excluding "Call of Duty" from platforms like Sony Group's PlayStation would be "very detrimental" to Activision's business. Kotick is very keen on the deal, acknowledging that it would value his personal shares at over $400 million.

To alleviate these concerns, Microsoft has agreed to license "Call of Duty" to its competitors, arguing that financially, it would be better off by licensing the games to all parties. The acquisition has received approval from several jurisdictions but has been challenged by the FTC in the United States and Britain's Competition and Markets Authority.

About the Author

David Love is an editor at Quiver Quantitative, with a focus on global markets and breaking news. Prior to joining Quiver, David was the CEO of Winter Haven Capital.

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