Former Activision CEO Kotick Eyes TikTok Acquisition Amid Ban Threat

Bobby Kotick, the former chief executive of Activision Blizzard, is reportedly considering acquiring TikTok, amid growing concerns and potential bans in the United States.

Image: Bobby Kotick, former Activision CEO.

According to The Wall Street Journal, Kotick has engaged in discussions with ByteDance, the Chinese parent company of TikTok, regarding a potential acquisition. The deal could amount to hundreds of billions of dollars.

This development coincides with the introduction of a new bill by US lawmakers that would mandate ByteDance to divest TikTok within six months or face a ban from US app stores. President Joe Biden has indicated his support for the bill, should it pass Congress.

The Wall Street Journal further reports that Kotick and OpenAI CEO Sam Altman discussed a possible collaboration to acquire TikTok during a dinner meeting last week.

Kotick's interest in TikTok emerges after his departure from Activision Blizzard, concluding a 30-year tenure that ended amidst controversy. Microsoft acquired Activision Blizzard last year. The company faced a lawsuit alleging that it fostered a culture of sexual harassment and discrimination under Kotick's leadership. The Wall Street Journal also reported that Kotick was aware of misconduct and did not fully disclose it to the board. Kotick has also been personally accused of harassment, allegations which Activision Blizzard has dismissed as "misleading."

Lawmakers have voiced concerns about data privacy and TikTok's connections to China. President Biden's administration has already prohibited the app on state-owned devices and expressed support for a broader ban in the US. In contrast, former President Donald Trump, who previously sought to ban TikTok, has reversed his stance, arguing that a ban would benefit TikTok's competitors, such as Facebook and YouTube.

As the bill targeting TikTok gains momentum, the platform has urged its American users to advocate on its behalf, prompting them to contact their elected representatives. The bill, having cleared a committee vote last week, is anticipated to pass the House vote. If successful, it will proceed to the Senate and, ultimately, to the President for signature.