$69 billion sale to Microsoft could boost Activision Blizzard's tattered image
Why it matters: Mergers and acquisitions come with cultural shake-ups — and that’s precisely what Activision needs.
- The deal is expected to lead to the departure of embattled CEO Bobby Kotick, the Wall Street Journal reported.
Flashback: The company is accused of failing to address incidents of sexual assault, harassment and discrimination.
- Its stock has fallen by about 10% since allegations were publicized in July, making it a cheaper acquisition target.
What they're saying: "It is an opportunity for a reset," Peter Jaworski, a Georgetown University professor of business ethics, tells Axios.
The bottom line: "Your reputation disappears at the end of your independent existence," says Charles Elson, corporate governance professor at the University of Delaware.
Go deeper: California sues Activision Blizzard over unequal pay, “sexist culture”