Activision Announces New Co-Leaders Of Blizzard As J. Allen Brack Steps Down

Video game publisher Activision Blizzard (NASDAQ: ATVI) has been in the spotlight in recent weeks with the company accused of sexual harassment and a “frat boy” work environment. The company announced changes to its management team Tuesday.

What Happened: Jen Oneal and Mike Ybarra were announced as the new co-leaders of Blizzard in a letter to employees by Activision Blizzard President and Chief Operating Officer Daniel Alegre.

“Jen and Mike will share responsibility for development and operational accountability for the company. Both are leaders of great character and integrity and are deeply committed to ensuring our workplace is the most inspired, welcoming environment for creative excellence,” Alegre said.

Oneal has over 18 years of experience in the video game sector. Oneal was the Executive Vice President of Development at Blizzard prior to Tuesday, where she supported the “Diablo” and “Overwatch” franchises.

Ybarra has over 20 years of experience in the video game sector. Prior to working at Blizzard, Ybarra was a Senior Executive at Microsoft Corporation (NASDAQ: MSFT) in the company’s Xbox division. At Blizzard, Ybarra served as the Executive Vice President of Platform and Technology, where he oversaw Battle.net.

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Why It’s Important: Along with the appointment of the new co-leaders, Alegre offered this in the employee letter: “With Jen and Mike assuming their new roles, J. Allen Brack is leaving the company to pursue new opportunities.”

Brack was one of the people named in the lawsuit against the company. His departure could help win back employees who have staged walk-outs and spoken out on the company.

Brack spent over 15 years with Blizzard and has acted as president since October 2018. He was the executive producer for “World of Warcraft,” one of Activision Blizzard’s largest gaming franchises.

Prior to joining Blizzard, Brack held roles with Sony Corporation (NYSE: SONY) and Electronic Arts Inc (NASDAQ: EA).

Brack leaving the company could provide a setback on the progress of future “World of Warcraft” expansions. The appointment of the new co-leaders of the company could serve as a positive sign for investors that the company is seeking to move forward and keep employees happy and change its culture.

ATVI Price Action: Shares closed Monday's session down 2% at $81.10 and were down another 5.1% to $78.54 at publication time.