that while the company had seen a record year in revenue, they would be laying off around 775 people or around 8% of their workforce in non-management divisions, "de-prioritizing initiatives that are not meeting expectations and reducing certain non-development and administrative-related costs across the business", according to Kotick. Kotick stated that they plan to put more resources towards their development teams and focus on esports, Battle.net services, and the publisher's core games which include Candy Crush, Call of Duty, Overwatch, Warcraft, Diablo, and Hearthstone. Prior to this, Activision Blizzard and Bungie agreed to terminate their distribution deal with Destiny 2 as it was not bringing in expected revenue for Activision, with Bungie otherwise retaining all rights to Destiny. This transaction allowed Activision Blizzard to report as part of its 2018 fiscal year filings. The company announced that Daniel Alegre would replace Coddy Johnson as president of Activision Blizzard effective April 7, 2020, with Johnson transitioning to special advisory role. During the second quarter of 2020, the company's net revenues from digital channels reached $1.44bn due to the growing demand for online games driven by COVID-19 lockdowns. By January 2021, the company's net value was estimated to be based on its stock trading price due to the ongoing demand for video games from the COVID-19 pandemic. The Public Investment Fund of Saudi Arabia acquired 14.9 million shares of Activision Blizzard, valued at , in February 2021. In April 2021, Fernando Machado, former Brazilian executive at Burger King, joined the company as chief marketing officer (CMO). The company also announced in April 2021 that Kotick will remain CEO through April 2023, through Kotick agreed to take a 50% cut of his pay, equal to . Kotick will remain eligible to receive annual bonuses, and while he agreed to reduce his target bonus by 50% as well, he potentially can earn up to 200% of his base pay based on the company's performance. Workplace misconduct lawsuit and proposed acquisition by Microsoft (2021–present) As a result of a two-year investigation, on July 20, 2021, the California Department of Fair Employment and Housing (DFEH) filed a suit alleging sexual harassment, employment discrimination and retaliation on the part of Activision Blizzard. The details of the allegations involve accusations of inappropriate behavior towards women and fostering a "frat boy" culture. The company's management initially tried to pass off the allegations as false, which led to employees sharply