Microsoft employees: Worried that the Activision Blizzard scandal will corrode its own corporate culture

Source: NetEase Technology

On Tuesday, local time, Microsoft announced that it would spend about $68.7 billion to acquire well-known game developer Activision Blizzard. If all goes well, it could be the largest M&A deal Microsoft has made in its 46 years of existence. But some Microsoft employees are worried that scandals such as activision Blizzard's sexual misconduct and the company's bad culture will affect Microsoft.

Activision Blizzard has well-known games like Call of Duty and World of Warcraft. If the deal is successful, Microsoft will further consolidate its strength in the gaming industry and also support the key Game Pass subscription service with Activision Blizzard's game resources.

But the deal also worries some players that Microsoft will take down popular games like Overwatch 2 from Competing Gaming platforms like Sony PlayStation, and it seems likely to cause antitrust scrutiny around the world.

However, the biggest risks may stem from Activision Blizzard's corporate culture and a series of scandals that occurred at the company last year. In addition to access to a wealth of talent and intellectual property, Microsoft is acquiring a company with a deteriorating reputation in the industry, and some Microsoft employees have expressed their dissatisfaction with the deal within the company.

Just hours after the deal was announced, a Microsoft employee said, "I'm disappointed that we haven't heard from Nadella that he's ensuring that the terrible culture rooted in Activision Blizzard doesn't breed and spread within Microsoft." ”

"As a female engineer, I personally would never consider working for Blizzard or Activision. I hope we hear concrete steps to make sure Microsoft doesn't introduce an unwelcome culture of danger. ”

A Microsoft spokesperson said the two companies would operate independently until the deal was completed. He referred to CEO Satya Nadella's response to investors' statements, saying that "it is vital for Activision Blizzard to drive a new cultural commitment." The spokesperson added, "We recognize that after the deal closes, we still have a lot of work to do to continue to build a culture where everyone does what they can." ”

"Microsoft is committed to inclusion, respect and integrity in all areas of gaming, both employees and players," the spokesperson said. ”

Microsoft has nearly 190,000 employees, so part of the concern that activision Blizzard culture will be difficult to represent all employees. However, these concerns from Microsoft employees were raised directly to CEO Nadella through an internal forum called "Contact the CEO." Microsoft described the channel as "allowing employees to ask questions directly to Nadella and his leadership team and discuss topics relevant to the company as a whole."

Last July, California sued Activision Blizzard for a "brotherhood" culture and widespread harassment of female employees by the company. Recently, Activision Blizzard employees and investors demanded ceo Bobby Kotick's resignation on the grounds that Kotic had been aware of allegations of sexual harassment at the company for years. Activision Blizzard said Monday it had laid off or dealt with dozens of employees since last July.

Some also linked the deal to Microsoft's recent problems. Women at Microsoft called on management to address issues related to gender discrimination and sexual harassment. At the insistence of shareholders, Microsoft recently hired a law firm to review the company's sexual harassment practices and policies involving sexism. Previously, Microsoft founder Bill Gates and other executives were accused of misconduct.

"It's hard for Nadella to keep quiet about women fighting for better working conditions at Microsoft," one industry insider said of the reaction of Microsoft employees.

Microsoft initially announced the deal and said Kotick would continue as Activision Blizzard CEO, but reports later on Tuesday suggested that Kotic expected to leave after the deal closes.

"I'm glad I'm not the only one who's upset about this. This morning's official statement stressed that at least the majority of the Activision Blizzard management team will remain in office. Another Microsoft employee said, "Do we really have to be taken care of by people who are blind to workplace abuse, discrimination, and dehumanizing working conditions?"

In the case of Microsoft, the message surrounding the deal focused on what the company calls an inclusive commitment. Microsoft's Xbox division said: "Xbox is committed to integrating inclusivity into all aspects of the game. Nadella wrote in an email to employees on Monday morning that the company will continue to "create a more diverse and inclusive culture for Activision Blizzard's new colleagues and ensure that all of our employees can do what they love to do and thrive in such a safe and comfortable environment, as much as I can." ”

Dan Newman, an analyst at market research firm Futurum Research, expects none of this will affect the progress of the deal. He said the debate over the two companies' antitrust might not make any sense because regulators such as the U.S. Federal Trade Commission (FTC) are more focused on other companies like Amazon or Apple. He also expects that given the potential benefits, Microsoft believes the deal will be worth it, regardless of the challenges facing Activision Blizzard's culture.

"There may be a lot of people who think this is problematic," Newman said. "Microsoft's due diligence process is very thorough, and they know what they're doing and what's at stake: after all, there are 400 million users a month."