Boston, MA 07/17/2014 (wallstreetpr) – Activision Blizzard, Inc. (NASDAQ:ATVI) is facing problems with its CEO Robert Kotick over the issue of buyout. Vivendi SA, who is controlling shareholders in Activision, wanted to fire Kotick last year. Kotick was charged with the allegations that he helped a group to buy out most of Vivendi’s stake in the video game company. Kotick refused to back any stake sale that was not owned by his investment group.
The firing issue
Kotick was given enough time to stay in Santa Monica that is California-based Activision Company. He was looking after the $8.2 billion deal that gave him control of the video game company. It is the same profitable company that makes Call of Duty and Skylanders games.
Last year, Vivendi was not in a position to fire Kotick. No one even thought to take a crucial step. Even former CEO Jean-Francois Dubos has questioned on last May that who will fire Kotick. At that time, Vivendi’s CFO and Activision’s chairman Philippe Capron replied he can anytime the executives want.
The official ruling
Kotick is at the CEO position of Activision since 1991. It even threatened the management by saying that he will quit if the directors make a deal in the stake sale of Vivendi without his group. He refused to cooperate with any equity or debt offering that didn’t involve the offer of his investment group. Ultimately, the executives have to accept the Kotick’s decision. The minority shareholders filed a complaint against the CEO last month.
In June, the legal decision was given on the case as per which current Activision Chairman Brian Kelly and Kotick are liable for investor claims. They took the benefits from the leading the group in the acquisition of $2.34 billion of Vivendi’s stake in Activision. The deal allowed the people involved in the case to acquire the control over the maker of the world famous game without even paying a premium for it.