Activision stock is plunging after a report claimed that CEO Bobby Kotick knew about sexual harassment and bullying at the company.
The analyst note, which was leaked to Reuters and published in full, said that Kotick may have known about harassment, and the extent of it, as early as 2016. The report questioned whether Kotick knew that some of his underlings might have engaged in sexual harassment.
Kotick and several other executives have remained silent.
Activision responded to the report on Friday, saying in a statement, “The primary focus of our investigation is the well-being of all of our employees and we are pleased to report that at this time there is no basis to the claims in the article. Activision does not tolerate inappropriate behavior toward employees and we took immediate action against those involved when it was brought to our attention. We remain committed to creating an environment where all of our employees feel safe and respected.”
What is unclear is how this incident has damaged Activision’s stock. Kotick joined Activision in 1995 and became chairman and CEO in 2007. When he took over, the company was known for its digital games and, during the time that he was chief executive, its stock price rose rapidly and almost reached the $60 a share mark, which was the threshold he and other CEOs consider as a target price for the stock.
Read the full story at Reuters.
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