Today in a CNBC interview, Bobby Kotick, CEO of Activision-Blizzard, shed light on the company's recent performance and its current strategic trajectory. The company's recent earnings report beat estimates, although there were underlying concerns within the gaming community.
Kotick was keen to address the terms of a recent deal that had caused consternation among a section of shareholders. These shareholders had expressed discontent with the company accepting a $0.99 per share offer and an additional dividend, along with a higher termination fee should the deal fall through after August 29th.
However, Kotick maintained that the terms were acceptable. He pointed out that 98% of the company's shareholders had approved the transaction and had been broadly supportive of the deal's details. He defended the termination fee, noting that it might be one of the largest in history, and argued that the deal, overall, was favorable for shareholders.
Kotick also discussed the ongoing challenges and opportunities facing Activision-Blizzard in the highly competitive video gaming landscape. He noted the increasing difficulty of attracting AI and machine learning talent, given the rapid pace of technology advancements.
The CEO further addressed the company's growth opportunities in the United Kingdom. He cited the UK's rich history in the evolution of the video gaming industry, with pioneers like the BBC and Sinclair launching early consumer computers in the 1980s. The talent pool in animation, art, and game design is exceptional, he noted, implying that the UK could maintain its leadership in the global gaming industry.
Kotick also touched upon regulatory hurdles, particularly from the UK Competition and Markets Authority (CMA). The CMA had previously expressed opposition to a proposed transaction, prompting Kotick to stress the importance of adhering to the law and facts when conducting mergers and acquisitions.
Activision-Blizzard has studios in Poland, Berlin, Barcelona, and Stockholm, and Kotick anticipates a promising future for the gaming industry across Europe. He characterized video games as a growth opportunity in markets where expansion has been somewhat sluggish.
Overall, Kotick painted an optimistic picture of Activision-Blizzard's current position and future prospects in the global gaming landscape, while acknowledging the challenges and competitive pressures the company faces.
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