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Activision's Kotick could see windfall in purchase
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Bobby Kotick, the chief executive of Activision Blizzard Inc., could walk away with as much as $520 million after Microsoft Corp. completes its planned purchase of the videogame company.
In a securities filing Friday, Activision said Mr. Kotick would receive $14.4 million in severance if he is terminated or quits under a variety of circumstances within a year of a change of control at the company. It also said Mr. Kotick owns 4.3 million shares and has the right to acquire another 2.2 million — potentially worth just over $500 million combined at the $95-a-share deal price. Mr. Kotick received $826,549 in compensation in 2021, according to the filing.
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Friday's disclosure, in Activision's annual proxy statement, reflects the company's definitive accounting for Mr. Kotick's stake in the company and potential severance under existing agreements. It provides investors their best window to date into the potential windfall Mr. Kotick could receive after the acquisition, which is pending regulatory approval. Activision and Microsoft have said they expect it to close by spring 2023.