Report: US Senators urge FTC to scrutinize Microsoft/Activision merger [Updated]
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Update 2, April 1: An Activision spokesperson provided Ars Technica with the following statement:
On Tuesday, the federal court approved a settlement agreement between Activision Blizzard and the EEOC that includes an $18M fund to compensate eligible claimants and to bolster enhancements to policies, practices, and training to prevent harassment and discrimination in the workplace, among other commitments. The company is committed to a safe and equitable working environment for all employees and has invested significant resources to ensure we're creating a model for the industry. The transaction between Microsoft and Activision Blizzard will not interrupt any of the actions the Activision Blizzard's leadership team has implemented throughout 2021 and is continuing to implement in 2022 with regards to improving our workplace. Activision Blizzard's leadership team has discussed the company's goals at length with Microsoft, and Microsoft has reviewed the renewed culture commitment and actions Activision Blizzard have done so far, and the efforts theyve undertaken. Microsoft is supportive of the goals and the work being done. This is a compelling transaction for all stakeholders, including employees.
No additional special compensation arrangements for Mr. Kotick were entered into in connection with the transaction. Mr. Kotick's base salary has been reduced to California's minimum annual salary (which is approximately $62,500 for 2022), and he will not be awarded any bonuses or equity grants until the Workplace Responsibility Committee of the Activision Blizzard Board of Directors has determined that Activision Blizzard has made appropriate progress toward achievement of the transformational gender-related goals and other commitments described in such announcement.
Update, April 1: A spokesperson for Sen. Whitehouse has shared the full text of the letter sent to the FTC. In addition to the issues discussed below, the letter addresses whether Microsoft and Activision's actions could "amount to anticompetitive harms in our labor market, and if so, if the merger will exacerbate these problems."
"The proposed acquisition appears to be a cynical and 'opportunistic' attempt to capitalize off the systemic issues coming to light at Activision Blizzard," the letter reads.
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