A recent deep-dive report by The New York Times has unveiled the hidden business conflicts behind the breakup between NetEase and Activision Blizzard. Sources indicate that long before the negotiations, Activision Blizzard CEO Bobby Kotick held a grudge against NetEase due to its investment activities, including a 2018 investment in Bungie and a startup led by former Activision executives, both of which Kotick viewed as a threat to his company’s interests.
The core of the dispute was the 'exorbitant' contract terms demanded by Activision Blizzard. They allegedly asked for a $500 million upfront payment while offering only a six-month contract extension, compared to longer terms offered to other potential partners. Seeing this as an unreasonable and illogical demand, NetEase refused, which directly triggered the shutdown of the Chinese servers.
Additionally, commenters noted further background: Kotick had accused NetEase of threatening to interfere with the regulatory review of Microsoft's acquisition of Activision. NetEase vehemently denied this, counter-accusing Blizzard of manipulating regulatory bodies worldwide. While rumors suggested companies like ByteDance, Tencent, or even China Mobile were interested in taking over, the heavy financial requirements and harsh terms have deterred most potential suitors.
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