Kotick And Activision Blizzard See Profits Rise Amidst Re-Election

January 6, 2012 by Carly Crutchfield  
Filed under Computers

On Thursday June 2, 2011, Activision Blizzard will hold their Annual Shareholders Meeting. As is the case with all publicly traded companies, Activision’s Board of Directors will be reelected by the stockholders. Most online publications are using this voting to speculate that Activision CEO Bobby Kotick may be replaced. However, the success that Activision Blizzard has experienced under Kotick’s leadership this past year make the prospect of him being voted out highly unlikely.

In fact, the re-election of the Board at any shareholder’s meeting is, for all intensive purposes, simply a formality. Of course, should there ever be a real problem with a board member, the shareholders have the power to vote them out.

In Activision Blizzard’s case, for fiscal year 2010 that ended in on December 31, the company’s GAAP earnings per diluted share increased to $0.33, compared with $0.09 per diluted share for 2009. This performance was in part due to the release of Call of Duty: Black Ops, which shattered sales records set by its predecessor Modern Warfare 2.

As CEO of Activision for the past 20 years, Kotick has created some of the industry’s most popular franchises including Call of Duty, Tony Hawk, and Guitar Hero. In addition, Bobby Kotick has orchestrated deals that have shot his company to the top of the multi-billion dollar gaming industry. In 2008, Kotick finalized a merger between Activision and Vivendi Games, which owned Blizzard Entertainment, creators of the blockbuster online subscription-based MMORPG World of Warcraft. This merger resulted in Activision Blizzard which has surpassed Electronic Arts to become world’s largest and most successful video game company.

Beyond being an astute businessman, Kotick is also an enthusiastic philanthropist. He serves on the Board of the Tony Hawk Foundation, a non-profit supporting the creation of skateparks for America’s youth and is a member of the Board of Trustees at the Los Angeles County Museum of Art, the largest art museum in the Western U.S. In 2009, Kotick made the Call of Duty Endowment using profits from the blockbuster game franchise as a way of giving back. The Endowment’s mission is to raise awareness of veteran’s unemployment and to provide funding to organizations that help veterans with job training and placement after returning from service overseas.

With his successful track record Bobby Kotick has delivered more value to Activision’s shareholders than any of his competitors. And it is not likely his shareholder’s are going to want to give that up anytime soon.

For more information and questions about Bobby Kotick please see here on Kotick

Bobby Kotick, CEO Activision, A Gamer

December 17, 2011 by Carly Crutchfield  
Filed under Computers

Activision Blizzard is the largest videogame makers in the world. As an industry leader, Activision is an easy target for gamers to express their displeasure. Dan Amrich, former videogame journalist and Activision’s social media manager, defended the gaming giant in an interview by saying the maker has not earned all the bad press it receives.

Amrich believes that gamers’ negative feelings began with Activision’s merger with Vivendi Games in 2008. Activision’s CEO Bobby Kotick orchestrated a deal, whereby Vivendi’s Blizzard Entertainment would become a part of Activision. Blizzard Entertainment is responsible for the subscription-based blockbuster World of Warcraft as well as the StarCraft, Warcraft, and Diablo franchises. The merger created Activision Blizzard, the world’s largest and most successful videogame publisher.

Kotick remained CEO after the merger, and he is often the subject of criticism. Amrich maintains that there exists a great deal of misinformation with regards to Kotick and that he is a natural target as the man at the top.

Many critics claim Kotick is not a fan of videogames, and only cares about only making profits. However, Kotick has spent the last twenty years rebuilding an insolvent videogame publisher, and says that because of his responsibilities as a single father he cannot play videogames as much as he would like to. He also reminds critics that he played a lot of games during high school and college which is what fueled his dedication for games to begin with.

“It comes with the territory,” said Amrich regarding negative public opinion for Activision. “In gaming, we are all trained from birth to root for the underdog. Activision is a multi-billion dollar corporation with a string of hit franchises, global success, and market leadership. That does not sound too much like an underdog to me.”

While Activision Blizzard may foster mixed emotions among gamers, the company is still responsible for some of the most successful videogame titles in history. Since Bobby Kotick became CEO in 1991, Activision has produced blockbuster titles including the Tony Hawk Pro Skater, Guitar Hero, and Call of Duty series.

For more information or questions in regards to Bobby Kotick or Activision please see here on Kotick