Activision Blizzard
| File:Activision Blizzard Logo.svg Logo used since 2015 | |
| Company type | Subsidiary |
|---|---|
| Industry | Video games |
| Founded | July 9, 2008 |
| Headquarters | Santa Monica, California , United States |
Area served | Worldwide |
Key people | Bobby Kotick (CEO), Daniel Alegre (President) |
| Products | Call of Duty, Crash Bandicoot, Guitar Hero, Skylanders, Spyro, Tony Hawk's, Diablo, Hearthstone, Heroes of the Storm, Overwatch, StarCraft, World of Warcraft, Candy Crush Saga |
Number of employees | 17,000 (2023) |
| Parent | Microsoft Gaming |
| Website | www |
Activision Blizzard, Inc. is a United States-based video game holding company with its headquarters situated in Santa Monica, California. The corporation consists of three primary divisions: Activision, Blizzard Entertainment, and King. Established in July 2008 through the merger of Activision, Inc. and Vivendi Games, the company also controls subsidiary development studios including Infinity Ward, Treyarch, and Sledgehammer Games.
Among its key intellectual properties are titles such as Call of Duty, Crash Bandicoot, Guitar Hero, Skylanders, Spyro, Tony Hawk's, Diablo, Hearthstone, Heroes of the Storm, Overwatch, StarCraft, World of Warcraft, and Candy Crush Saga. Blizzard Entertainment has made substantial investments in esports, particularly focusing on games like Overwatch and Call of Duty. The releases from Activision Blizzard have repeatedly set new records, and as of 2018, it ranked as the largest gaming company in both the Americas and Europe by revenue and market value.
In 2022, the company reported revenues amounting to $7.53 billion, operating income of $1.67 billion, and net income totaling $1.51 billion. Its total assets stood at $27.4 billion with equity valued at $19.2 billion. As of 2023, Activision Blizzard employs around 17,000 individuals.
The company has encountered various controversies, including accusations related to patent violations and unpaid royalties. In July 2021, the California Department of Fair Employment and Housing filed a lawsuit against Activision Blizzard citing sexual harassment and discrimination allegations. This lawsuit triggered investigations by the U.S. Securities and Exchange Commission, employee protests involving walkouts, withdrawal of sponsorships from esports events, resignations or dismissals among senior executives, and widespread claims concerning workplace misconduct.
On January 18, 2022, Microsoft revealed plans to acquire Activision Blizzard for $68.7 billion, with the transaction finalized on October 13, 2023. Following this acquisition, Activision Blizzard operates as a subsidiary under Microsoft Gaming, alongside entities such as Xbox Game Studios and ZeniMax Media.
Background and formation (2007–2008)
The original incarnation of Activision was founded in 1979 as an independent developer creating software for the Atari Video Computer System. In 1988, it expanded its scope to include non-gaming applications and rebranded itself as Mediagenic; however, this diversification resulted in significant financial losses. In 1991, a consortium led by Bobby Kotick purchased the company, restructured its debt obligations, reverted its name to Activision, and relocated its headquarters to Santa Monica, California. By 1997, Activision had regained profitability. Kotick then embarked on an acquisition strategy that incorporated about 25 studios and cultivated successful franchises such as Tony Hawk's, Call of Duty, and Guitar Hero. Nevertheless, by 2006 the rising popularity of massively multiplayer online (MMO) games presented challenges since Activision lacked offerings in that genre while facing intensified competition from rivals like Electronic Arts.
In 2006, Kotick initiated discussions with Jean-Bernard Lévy, CEO of French media conglomerate Vivendi, which owned Vivendi Games—a parent company overseeing Sierra Entertainment and Blizzard Entertainment. Seeking to gain access to Blizzard’s lucrative MMO title World of Warcraft, Kotick proposed acquisition negotiations. Lévy responded with a counterproposal for a merger where Vivendi would maintain majority ownership. Although initially reluctant to relinquish control, Kotick acknowledged the strategic advantages offered by Vivendi’s market position, especially within China.
The merger received board approval at Activision in December 2007. The combined entity was named Activision Blizzard and kept its headquarters in California. Bobby Kotick assumed roles as president and CEO while René Penisson was appointed chairman. The European Commission granted antitrust clearance in April 2008 without objections. On July 9, 2008, the $18.9 billion transaction closed with Vivendi becoming the majority shareholder holding roughly 54% of shares. The remaining shares were publicly traded on NASDAQ under the symbol ATVI. Following the merger, Lévy succeeded Penisson as chairman.
Within the merged organization, Blizzard retained operational independence whereas other Vivendi divisions such as Sierra Entertainment were either closed or sold off. Kotick stated that Sierra products failing to meet Activision’s quality benchmarks would likely be discontinued. Some Sierra franchises were published by other companies; however, key series including Crash Bandicoot, Spyro, and Prototype remained part of Activision Blizzard’s portfolio.
New Releases and Revenue Milestones (2009–2012)
At the start of 2010, the independent developer Bungie entered into a decade-long publishing partnership with Activision Blizzard, enhancing the company's game lineup. By the close of that year, Activision Blizzard had established itself as the largest video game publisher globally. The 2011 launch of Call of Duty: Modern Warfare 3 amassed $400 million in sales across the US and UK within just 24 hours, setting a record for the most successful entertainment launch to date. This achievement built upon prior record-breaking debuts from the Call of Duty franchise in 2009 and 2010, where Modern Warfare 2 and Black Ops respectively earned $310 million and $360 million on their initial days. The series continued its success with Call of Duty: Black Ops III in 2015, which generated $550 million worldwide during its opening weekend.
In 2011, Activision Blizzard introduced the Skylanders series, credited with creating the toys-to-life genre. The first installment, Skylanders: Spyro's Adventure, received nominations for "Game of the Year" and "Innovative Toy of the Year" from the Toy Industry Association. The franchise expanded onto major consoles, PC, and mobile devices, playing a key role in diversifying Activision Blizzard’s offerings and boosting revenue.
Separation from Vivendi and Expansion (2013–2014)
On July 25, 2013, Activision Blizzard declared a $5.83 billion acquisition of 429 million shares from Vivendi, which lowered Vivendi’s ownership from 63% to 11.8% by September. This deal ended Vivendi’s controlling interest, transforming Activision Blizzard into an independent entity with most shares publicly traded. CEO Bobby Kotick and Chairman Brian Kelly collectively maintained a 24.4% ownership stake. The share repurchase was finalized on October 12, 2013, after receiving approval from the Delaware Supreme Court. Vivendi further reduced its stake to 5.8% by May 2014 and completely divested by 2016.
In terms of product launches, Activision Blizzard released Destiny on September 9, 2014, which achieved over $500 million in retail sales on its first day—a record for a newly introduced gaming franchise. Prior to this, on November 5, 2013, the company launched Call of Duty: Ghosts, written by screenwriter Stephen Gaghan; it reached $1 billion in retail sales on its release day.
By 2014, Activision Blizzard had become the fifth-largest gaming company worldwide by revenue, with total assets near $14.7 billion and equity close to $7.5 billion. This era was characterized by significant growth fueled by major game releases and newfound independence from Vivendi, strengthening both market position and financial results within the global gaming sector.
Inclusion in S&P 500 and Organizational Developments (2015–2021)
Activision Blizzard was added to the S&P 500 on August 28, 2015, joining Electronic Arts as one of two gaming companies on this prestigious list. That year also saw the release of Skylanders SuperChargers, which broadened the toys-to-life category by incorporating vehicles. In September 2015, Activision partnered with Bungie to launch Destiny: The Taken King, which set new records for day-one downloads on PlayStation platforms.
In November 2015, Activision Blizzard acquired social gaming powerhouse King, known for Candy Crush Saga, in a $5.9 billion deal that significantly expanded its casual gaming segment. Concurrently, the company established Activision Blizzard Studios, a division dedicated to producing film and television content based on its franchises; this unit was led by producer Stacey Sher alongside former Disney executive Nick van Dyk.
By June 2017, Activision Blizzard entered the Fortune 500, becoming only the third gaming firm after Atari and Electronic Arts to reach this milestone.
In February 2019, CEO Bobby Kotick announced workforce reductions amounting to roughly 775 employees—about 8% of non-management staff—to reallocate resources toward development teams focused on esports initiatives, Battle.net services, and core franchises such as Candy Crush, Call of Duty, Overwatch, Warcraft, Diablo, and Hearthstone. Earlier that year, Activision concluded its distribution agreement with Bungie for Destiny 2, granting Bungie full rights while reporting $164 million in revenue from the deal.
Daniel Alegre took over as president in April 2020, succeeding Coddy Johnson who transitioned into an advisory capacity. During Q2 2020 amid COVID-19 lockdowns, digital revenue surged to $1.44 billion. By January 2021, sustained demand for video games propelled Activision Blizzard’s market capitalization to roughly $72 billion.
In February 2021, Saudi Arabia's Public Investment Fund purchased approximately 14.9 million shares valued at $1.4 billion. Two months later in April, former Burger King executive Fernando Machado joined as chief marketing officer (CMO). CEO Kotick agreed to reduce his salary by half through April 2023 but remains eligible for performance-based bonuses up to twice his base salary.
Lawsuit over workplace misconduct and Microsoft acquisition (2021–present)
On July 20, 2021, the California Department of Fair Employment and Housing (DFEH) initiated legal action against Activision Blizzard, accusing the company of sexual harassment, employment discrimination, and retaliatory practices. A shareholder lawsuit alleged that these issues were concealed within financial disclosures but was ultimately dismissed. The Equal Employment Opportunity Commission also filed a suit, which culminated in an $18 million settlement fund for affected employees. By December 2023, Activision Blizzard and DFEH reached a $54 million agreement targeting disparities in pay and promotion, with no conclusive proof of widespread harassment uncovered.
Microsoft revealed on January 18, 2022, its plan to acquire Activision Blizzard for $68.7 billion in cash, valuing each share at approximately $95. This acquisition elevated Microsoft to the position of the third-largest gaming corporation worldwide and the biggest headquartered in the Americas, trailing only Tencent and Sony. Shareholders gave their approval in April 2022. Although regulatory bodies in the EU and China approved the transaction before its intended closing date of October 18, 2023, it faced opposition from the U.S. Federal Trade Commission and UK Competition and Markets Authority due to antitrust concerns.
To mitigate regulatory objections, Microsoft licensed cloud gaming rights for Activision Blizzard titles to Ubisoft, facilitating regulatory clearance. The acquisition finalized on October 13, 2023. Before the takeover, Activision Blizzard reported revenues of $7.54 billion and net earnings of $1.52 billion for 2022. CEO Bobby Kotick announced his intention to resign concurrent with the deal’s closure but remained on board through the end of the year to assist with the transition; he officially left on December 29, 2023.
In May 2022, quality assurance testers at subsidiary Raven Software established the Game Workers Alliance (GWA), backed by CODE-CWA, voting 19–2 in favor of unionization—the first significant union formed within an Activision Blizzard studio. The National Labor Relations Board formally recognized GWA.
Following Raven Software’s union formation, Blizzard Albany’s QA team of 20 members initiated a union campaign in July 2022 as GWA Albany, unanimously approving (14–0) union status to become the company’s second studio with organized labor representation.
At the start of 2023, Activision Blizzard announced plans to discontinue its full-time remote work policy between April and June. By November, it further declared that hybrid work arrangements would cease in 2024 for employees based in Austin, Eden Prairie, and El Segundo offices. The ABK Workers Alliance condemned this decision as a tactic to force employee departures.
On March 8, 2024, nearly 600 QA testers across three studios voted decisively (390–8) to establish "Activision Quality Assurance United-CWA," marking it as the largest video game union in the United States; Microsoft voluntarily acknowledged this union. Subsequently, on July 24, 2024, approximately 500 artists, designers, engineers, producers, and QA testers involved with World of Warcraft also voted to form a union.
Games
Corporate organization
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Activision Blizzard is structured into three main divisions:
- Activision, which manages development, production, and distribution through its subsidiaries, including oversight of the Call of Duty League.
- Blizzard Entertainment, which handles Blizzard’s gaming portfolio, operates Battle.net, organizes BlizzCon, and administers the Overwatch League.
- King, which concentrates on mobile game creation and distribution.
Esports endeavors
Activision Blizzard holds ownership over the prominent esports titles Call of Duty and StarCraft. On October 21, 2015, it revealed plans to establish a dedicated esports division called Activision Blizzard Media Networks, headed by sports executive Steve Bornstein alongside Major League Gaming (MLG) co-founder Mike Sepso. This new unit integrated assets from the acquired IGN Pro League. Bornstein assumed the role of chairman.
By December 31, 2015, Activision Blizzard intended to acquire nearly all assets of MLG to enhance its esports footprint and launch an esports-focused cable channel. The acquisition was finalized on January 4, 2016, at a cost of $46 million. This move aimed to broaden its competitive gaming market share despite reports indicating MLG would cease operations with much of the purchase price allocated toward debt repayment.
In November 2016, Blizzard Entertainment debuted the Overwatch League—a professional esports league modeled after traditional sports frameworks. The inaugural season included 12 teams owned by notable sports figures such as Robert Kraft and Jeff Wilpon, exemplifying strategic efforts to attract investment from conventional sports industries.
The first Overwatch League Grand Finals held at Brooklyn’s Barclays Center in July 2018 drew a global audience of 10.8 million viewers, signaling substantial business growth and influence in the market. The company aimed to expand to 18 teams in 2019 and ultimately reach 28 teams worldwide.
In 2018, Activision Blizzard secured multi-year broadcast agreements with The Walt Disney Company, enabling Overwatch League matches to air on ESPN and Disney XD, thereby broadening media exposure. Additionally, it entered an exclusive multi-year streaming contract with Google for all its esports events—including both Call of Duty and Overwatch leagues—on YouTube. Valued at roughly $160 million, this deal doubled prior arrangements with Twitch and incorporated use of Google's cloud services.
Nevertheless, due to decreases in viewership and profitability amid the COVID-19 pandemic, Activision Blizzard closed Major League Gaming by January 15, 2024.
Call of Duty Endowment
Established by Kotick in 2009, the Call of Duty Endowment (CODE) has successfully facilitated the placement of more than 50,000 veterans into meaningful employment opportunities. In 2013, CODE launched the "Seal of Distinction" initiative, providing $30,000 grants to nonprofit organizations demonstrating exceptional success in veteran job placement. The endowment's objective is to assist 100,000 veterans from the US and UK in obtaining quality jobs by 2024. By funding nonprofits and advocating for veterans' workforce contributions, CODE supports their transition from military to civilian careers.
Worlds, Inc.
Around 2009, Worlds, Inc. secured multiple US patents concerning virtual environment interaction technology used in multiplayer gaming. The company declared intentions to pursue legal action against MMO publishers such as Activision. After resolving matters with NCSoft by 2010, Worlds initiated a patent infringement suit against Activision Blizzard in 2012, alleging that Call of Duty and World of Warcraft violated its patents.
In response, Activision filed a countersuit in 2013 related to Worlds’ use of patents owned by Activision; however, this case was dismissed with prejudice by 2014. A summary judgment favored Activision after it established prior utilization of the contested technologies before the patent priority date. Following a mandatory waiting period, Worlds pursued another lawsuit targeting Activision over Call of Duty: Ghosts, later attempting to bring Bungie into the dispute regarding Destiny. Bungie challenged Worlds’ patents through inter partes reviews (IPRs); despite initial setbacks, Worlds prevailed on appeal in 2018 by contesting Bungie's eligibility to file IPRs.
The litigation was subsequently stayed pending the outcomes of these IPR proceedings. Worlds contested the IPRs on grounds that Activision was not recognized as an interested party; although the Patent Office disagreed initially, the Federal Circuit Appeals Court ruled in Worlds’ favor in 2018. Consequently, the Patent Office commenced reexamination of the IPRs. Ultimately, in 2021, a US district court dismissed Worlds’ claims, determining that its patents represented abstract concepts lacking sufficient transformation to qualify for patent protection.
Infinity Ward
In early 2010, Activision terminated Vince Zampella and Jason West, co-founders of Infinity Ward, accusing them of "contract breaches and insubordination," which led to numerous staff departures. Subsequently, Zampella and West established Respawn Entertainment with backing from Electronic Arts, attracting many former Infinity Ward personnel.
In April 2010, Zampella and West filed suit against Activision for unpaid royalties related to Call of Duty: Modern Warfare 2. Activision counterclaimed, alleging self-interested conduct and later included accusations regarding negotiations with Electronic Arts and failure to return Call of Duty materials. Simultaneously, several Infinity Ward employees initiated legal action against Activision over unpaid royalties.
By May 2012, all involved parties reached confidential settlements that resolved disputes between Activision, Zampella, West, and the employee group. Additionally, Electronic Arts and Activision settled separately concerning allegations of employee poaching.
Uvalde school shooting lawsuit
In May 2024, relatives of victims from the 2022 Uvalde school shooting initiated legal action against Activision Blizzard, Meta, and the firearm producer Daniel Defense. The complaint claimed that Activision Blizzard targeted teenagers by featuring particular gun brands within Call of Duty. In response, Activision Blizzard invoked First Amendment rights to protect the game and requested the case be dismissed under anti-SLAPP statutes.
See also
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