By Dhirendra Tripathi
Investing.com – Activision Blizzard (NASDAQ:ATVI) stock traded 0.4% higher in Friday’s premarket, stabilizing after falling to its lowest level in nearly two years in response to ongoing concerns about the company's handling of sexual misconduct allegations.
According to Bloomberg, Phil Spencer, head of Microsoft’s Xbox, has written to his staff expressing dismay at the events at Activision. He referred to a story in The Wall Street Journal earlier this week which claimed Chief Executive Officer Bobby Kotick knew of sexual harassment at the company for years and that he mistreated women.
The allegations, and how Activitsion disclosed them, are the subject of an investigation by the Securities and Exchanges Commission. The company behind the ‘Candy Crush’ and 'Call of Duty' franchises also faces a lawsuit in California alleging discrimination against women. The stock has fallen around 30% since the July lawsuit.
Microsoft (NASDAQ:MSFT) joins Sony whose PlayStation Chief Jim Ryan sent a similar note to staff Wednesday, writing that he and his leadership were “disheartened and frankly stunned to read” that Activision “has not done enough to address a deep-seated culture of discrimination and harassment,” according to Bloomberg.
Xbox’s Spencer is keen to take action, Bloomberg said.
More than 1,100 Activision employees, roughly 10% of the company’s workforce, have signed an online petition demanding Kotick’s resignation, the Journal reported Thursday.
Sony (NYSE:SONY) and Microsoft, two of the world's dominant console makers, accounted for 17% and 11% of Activision’s 2020 revenue, making them its largest and fourth largest customer, respectively, according to a filing.
Allegations of sexual misconduct by staff and senior management overlooking them have been plaguing the company for months. The allegations have led to the exit of at least 20 staff, according to a recent statement by Activision. The company has created an $18 million fund to compensate victims of inappropriate behavior, the statement said.