Activision Misconduct Fallout Prompted Microsoft’s Overture (1)

Late last year, as employees at Activision Blizzard Inc. and Chief Executive Officer Bobby Kotick were reeling from accusations that Kotick knew of sexual harassment at the company for years, a group of Microsoft Corp. senior executives suggested that Xbox head Phil Spencer check in with the embattled CEO.

The goal, according to a person familiar with the matter, was to offer support to a key partner and make it clear that Microsoft had concerns about the treatment of women at Activision. Another aim: to ensure that if Kotick and the board were willing to sell the company, Microsoft would be ...