Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nasdaq  >  Activision Blizzard    ATVI

ACTIVISION BLIZZARD

(ATVI)
My previous session
Most popular
  Report  
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Activision Blizzard : Splits With 'Destiny' Studio, Sending Shares Lower

share with twitter share with LinkedIn share with facebook
share via e-mail
0
01/10/2019 | 08:21pm EDT

By Sarah E. Needleman

Activision Blizzard Inc. is cutting ties with the videogame studio behind one of its biggest hits, a surprise move that knocked its stock down more than 6.5% and adds to questions about whether the company has a robust enough slate of games for 2019.

Bungie Inc., the Bellevue, Wash., development studio responsible for the science-fiction shooter "Destiny," is purchasing the publishing rights for the franchise, Activision Blizzard said Thursday. Terms of the deal weren't disclosed.

The two had a partnership dating back to 2010. Neither company discloses sales for Destiny, but Activision Blizzard executives in November told analysts the latest content released for the series didn't live up to the company's expectations.

Some analysts had already raised concerns about Activision Blizzard's release slate for the year, particularly after its Blizzard Entertainment division announced no new games at its annual convention in November. Destiny was published by the company's Activision unit.

The loss of Destiny fanned those concerns. "This move will create a void across Activision Publishing's content pipeline, which we had presumed would include a Destiny sequel in 2020," Stifel analysts wrote. Still, the analysts said they expect the financial impact to be limited.

Activision Blizzard, the largest U.S. game publisher by market value, said in a securities filing that it doesn't expect to recognize "material revenue, operating income or operating loss" from the absence of Destiny in 2019.

Shares of Activision Blizzard rose 1% Thursday to $51.35 before sinking after hours. Videogame stocks have soared in recent years as revenue swelled from an explosion in sales of easily downloaded, high-margin digital content that game makers pump out continuously.

After years of running up, the stocks have slumped along with the broader tech market. Activision Blizzard lost 26% in 2018, while Electronic Arts Inc. fell 25%. Take-Two Interactive Software Inc. better weathered the selloff, sliding 6.2% for the year.

In a separate statement, Activision Blizzard said it plans to focus on its own studios' games and other projects. It has worked in the past year to build its shooter "Overwatch" into a viable, long-term competitive gaming league.

News of the separation follows an executive shake-up at Activision Blizzard. Finance chief Spencer Neumann left to take the same job at Netflix Inc. Meantime, Amrita Ahuja, chief financial officer of the Blizzard unit, is taking the CFO job at Square Inc. Separately, Blizzard co-founder Michael Morhaime resigned in October as president of the unit.

Bungie said in a blog post that it would continue to release content for Destiny. In June the studio said it had received a $100 million investment from China's NetEase Inc. and planned to use the money to create new games it will self-publish.

Write to Sarah E. Needleman at sarah.needleman@wsj.com

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on ACTIVISION BLIZZARD
06:01pACTIVISION BLIZZARD : Crash Team Racing Nitro-Fueled Gets a Turbo Boost with Rem..
BU
04:19pApple launches game subscription service 'Apple Arcade'
RE
02:40pApple launches game subscription service 'Apple Arcade'
RE
03/22SEKIRO : Shadows Die Twice Launches Globally – Death is Not Your Fate Just..
BU
03/20ACTIVISION BLIZZARD : Can loot box systems be classified as gambling?
AQ
03/19ACTIVISION BLIZZARD : Shareholder Investigation of Activision Blizzard
AQ
03/18CALL OF DUTY : Mobile Revealed
BU
03/18ROBBINS ARROYO LLP : Activision Blizzard, Inc. (ATVI) Sued for Misleading Shareh..
BU
03/18ACTIVISION BLIZZARD : Luminosity Gaming Wins CWL Fort Worth
BU
03/14ACTIVISION BLIZZARD : It's Good to Be Bad in Rise of Shadows™—Coming..
BU
More news
Financials ($)
Sales 2019 6 422 M
EBIT 2019 2 139 M
Net income 2019 1 194 M
Finance 2019 3 206 M
Yield 2019 0,79%
P/E ratio 2019 35,15
P/E ratio 2020 24,89
EV / Sales 2019 5,08x
EV / Sales 2020 4,35x
Capitalization 35 801 M
Chart ACTIVISION BLIZZARD
Duration : Period :
Activision Blizzard Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends ACTIVISION BLIZZARD
Short TermMid-TermLong Term
TrendsBullishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 33
Average target price 52,8 $
Spread / Average Target 13%
EPS Revisions
Managers
NameTitle
Robert A. Kotick Chief Executive Officer & Director
Rob Kostich President
Brian G. Kelly Chairman
Collister Johnson Chief Operating Officer
Dennis M. Durkin CFO & President-Emerging Businesses
Sector and Competitors
1st jan.Capitalization (M$)
ACTIVISION BLIZZARD0.64%35 801
NEXON CO LTD20.75%13 853
NCSOFT CORP--.--%9 239
ZHEJIANG CENTURY HUATONG GROUP CO LTD--.--%6 789
ZYNGA INC34.61%4 897
WUHU SHUNRONG SANQI IE NTWRK TECH CO LTD--.--%4 588