The controversy at Activision began last summer, when a California employment agency sued the company over accusations of fostering a toxic workplace culture in which women were routinely sexually harassed and discriminated against. In the ensuing months, employees staged protests, launched social media campaigns and called for executives to resign.
Some top leaders at Activision did leave, including J. Allen Brack, the head of the Blizzard Entertainment subsidiary, and the company pledged $250 million toward increasing employee diversity and said it would strengthen anti-harassment policies. But when The Wall Street Journal reported in November that Mr. Kotick had known for years about accusations of harassment against employees and in some cases had not taken action, calls for his resignation only increased.
Doing a deal with Activision is something of an about-face for Microsoft, which as recently as November was questioning the company’s culture. In an email to Xbox employees reported by Bloomberg and confirmed by the company, Mr. Spencer wrote in November that he was “disturbed and deeply troubled by the horrific events and actions” at Activision. On Tuesday, he was appearing alongside Mr. Kotick to praise the deal, and Mr. Kotick said that he felt the two companies “have similar values and think about our cultures similarly.”
Mr. Spencer said Microsoft “sat down with Bobby and the team and looked at the plan that they have in place,” adding that company culture is always a work in progress. “We are very supportive of the progress that he and the team are making.”
Current and former Activision employees who have been leading the efforts to get the company to reform its culture did not think the purchase was likely to prompt change in the short term, especially because the sale may face a long review from regulators.
The deal could take 12 to 18 months to close, Mr. Spencer said.
“We will continue to fight for improvement and stress proper employee representation,” said Jessica Gonzalez, a former Activision employee and one of the organizers of the ABetterABK activist movement, adding, “this doesn’t change anything.”