NEW YORK, Nov 17 (Reuters Breakingviews) - Activision Blizzard’s (ATVI.O) board is facing its call of duty. The $50 billion gaming company’s share price has lost roughly a tenth of its value since the Wall Street Journal reported on Tuesday that Chief Executive Bobby Kotick was aware of allegations of sexual harassment and assault earlier than previously known. The further the stock falls, the greater the chances of an activist barging in to demand a sale. The latest furor, which prompted some employees to stage a walkout on Tuesday, isn’t the only scandal plaguing the company. California regulators in July sued Activision for gender bias and allowing a toxic environment to flourish. And the U.S. Securities and Exchange Commission is investigating the company"s workplace practices, Activision said in September. Shares have fallen about 30% in the past six months. The company’s directors, who on Tuesday backed Kotick, could face some tough questions, particularly from any activist looking to replace the leadership. Both D.E. Shaw and Third Point are already listed on the shareholder roster. An activist might also pop up to agitate for a takeover. Granted, the regulatory environment would make it difficult to obtain clearance for a deal with another gaming company like Electronic Arts (EA.O) or Take-Two Interactive Software (TTWO.O). But there are some goliaths in the entertainment industry who might not face that problem.Netflix (NFLX.O), which has a market value of over $300 billion, has been getting into gaming. For example, it launched a series of mobile games in November including one based on its popular TV series "Stranger Things." A deal would be relatively cheap for co-CEOs Reed Hastings and Ted Sarandos. Netflix’s enterprise value is 46 times this year’s estimated EBITDA, around quadruple that of Activision. Potential buyers might be averse to taking on a company that has unsettled lawsuits. But for the right price, a streaming company might be willing to play the game read more . Follow @thereallsl and @jennifersaba on Twitter CONTEXT NEWS - Activision Blizzard’s share price fell on Nov. 16 after the Wall Street Journal reported that the video game publisher’s chief executive, Bobby Kotick, knew about allegations of sexual harassment and assault earlier than previously known. - Activision shares were down more than 10% from their Nov. 16 peaks by 1100 EDT the following day and were trading at $64.41 on Nov. 17. - The Activision board said in a statement on Nov. 16 it remained “confident that Bobby Kotick appropriately addressed workplace issues brought to his attention.” - “The goals we have set for ourselves are both critical and ambitious. The board remains confident in Bobby Kotick’s leadership, commitment and ability to achieve these goals,” the statement added. - Activision is under investigation by multiple regulators including the U.S. Securities and Exchange Commission about sexual misconduct dating back years. The company said in October that it had fired more than 20 employees following allegations of sexual harassment and discrimination at the workplace, with 20 more individuals facing other forms of disciplinary action.