Activision Blizzard had a strong trading day on the stock market today, with their share prices increasing by 7.5%. This increase is largely due to the success of CEO Bobby Kotick and his team at Activision Blizzard. Kotick has been with the company for 25 years, and has turned it into one of the most successful gaming companies in the world. Kotick has consistently increased Activision Blizzard’s revenues and profits every year, and he plans to continue that trend. He does this through a number of methods, such as the extensive acquisition strategy that the company employs (some failing, some succeeding), but also by specifically choosing talent at Activision Blizzard which fits in with his management philosophy.
The first ten hires that Kotick made at Activision created the company’s foundation, which he built upon with every subsequent hire. Along the way, some people who were less accepting of his management style left, but by hiring people who are committed to his vision he has been able to more than double the company’s revenue under his tenure. The last couple of hires that he made were of high profile people who it seems may be able to help him push Activision Blizzard’s profits even higher. Their recent success is likely the reason for investor confidence in the company at this time, but there are also quite a few other reasons why this rise makes sense.
First of all, an increase in the company’s share prices would have the added effect of increasing Activision Blizzard’s value, which in turn increases the worth of Bobby Kotick. This means that he is free to sell off some of his shares and cash out, making him one of the richest people in America. Kotick has a net worth of $1.6 billion according to Forbes, and he can add to that number with this year’s stock options for Activision Blizzard..
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