"Bucketing a company as racist" is not the point. The point is that the CEO is the head of, represents, and consequentially speaks for the company. Their personal opinions are reflected in the company's internal and external image. Don't we all have better things to do than argue moot points in nested comment threads? ;)

Is your problem the labeling of the company as racist because the CEO is (presumably) racist, because I really don't see much of a difference between Pewdiepie "being racist" and Pewdiepie doing racist things (like using the n-word ... repeatedly). Is it any better if we say the company is ran by a racist and supports racist employees rather than itself "being racist"?

I don't know Marc DeForest or S2, I've never played HoN, I don't know the history here, and none of this directly matters to me, but my immediate comparison is to James Gunn/Dan Harmon -- both of them said some offensive things years ago, and both of them have apologized. Whether you think it was right for Disney to fire Gunn or for Adult Swim to retain Harmon, there's been atonement for that. Has DeForest atoned for his behavior, or is he continuing to make a lot of money being racist?

That guy is responsible for hiring everyone under them, and checking shitty culture.