what explains activision blizzard stock

Why is everyone talking about Activision Blizzard stock?

“It requires consistency, commitment and leadership that not only talks the talk, but walks the walk. That’s why ... everyone can do their best work.” Thousands of Activision Blizzard ...

Why do people think Activision own Blizzard?

Activision Blizzard needs its Blizzard unit to keep up the momentum it has seen in recent quarters. This is especially important considering that the Activision unit’s user base growth has slowed down in the last two years. In contrast, Blizzard is doing exceptionally well, with Overwatch and a roster of strong gaming titles.

How bad is Activision Blizzard?

The news may come as surprising for some, as it indicates that Activision Blizzard had a good year marred by a less-than-stellar final quarter despite being hit with various sexual harassment and discrimination lawsuits since July.

Why did Blizzard merge with Activision anyway?

Why did Blizzard merge with Activision? The gaming companies it owned were sold to a French media company called Vivendi. The new division was called Vivendi Games and Blizzard was part of it. In 2007, Activision was on hard times so they merged with Vivendi and the game division was renamed Activision / Blizzard to capitalize on the brand name ...

What happens to Activision Blizzard stock?

Activision Blizzard stock closed at $76.10 per share, down 1.3%. That's almost 20% lower than Microsoft's bid of $95 per share. The deal is expected to close before July 2023.

Did Buffett buy Activision?

In the fourth quarter of 2021, Berkshire first purchased about $1 billion worth of Activision Blizzard stock, in a bet the company was undervalued. Buffett has said Berkshire “had no prior knowledge” of Microsoft's plan to buy the company when Berkshire made its initial investment.

Should you sell blizzard stock?

Activision Blizzard(ATVI-Q) Rating Stockchase rating for Activision Blizzard is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Who owns the most Activision Blizzard stock?

Top 10 Owners of Activision Blizzard IncStockholderStakeShares ownedBerkshire Hathaway, Inc. (Investm...8.23%64,315,222The Vanguard Group, Inc.7.73%60,398,914BlackRock Fund Advisors5.00%39,109,092SSgA Funds Management, Inc.4.30%33,636,9416 more rows

What will happen to Activision stock after merger?

If the merger is approved and completed -- which is still expected to occur by June 30, 2023 -- Activision Blizzard will delist from Nasdaq and no longer be a publicly traded company. This means shareholders will no longer own stock in the surviving business, which would be a wholly-owned subsidiary of Microsoft.

What stock is Buffett buying?

Buffett's investing conglomerate disclosed several new stakes late on Monday, including 55 million shares of Citigroup (worth around $2.6 billion) and 69 million shares of media giant Paramount Global (worth around $1.9 billion).

Is buying Activision stock a good idea?

Broad Value Outlook. In aggregate, Activision Blizzard currently has a Zacks Value Style Score of B, putting it into the top 40% of all stocks we cover from this look. This makes Activision Blizzard a solid choice for value investors, and some of its other key metrics make this pretty clear too.

Is Activision Blizzard a good buy now?

With shares currently trading more than 18% below its acquisition price, Activision Blizzard might not only be worth holding, but also buying.

Is Activision stock gonna go up?

The 23 analysts offering 12-month price forecasts for Activision Blizzard Inc have a median target of 95.00, with a high estimate of 100.00 and a low estimate of 82.00. The median estimate represents a +22.41% increase from the last price of 77.61.

What will Activision stockholders get?

On January 18, 2022 , Microsoft announced plans to acquire Activision Blizzard for $95.00 per share in an all-cash transaction. Subject to customary closing conditions and the completion of regulatory review, the proposed transaction is expected to close in Microsoft's fiscal year ending June 30, 2023 .

What happens to shareholders when a company is sold?

If the buyout is an all-cash deal, shares of your stock will disappear from your portfolio at some point following the deal's official closing date and be replaced by the cash value of the shares specified in the buyout. If it is an all-stock deal, the shares will be replaced by shares of the company doing the buying.

Does EA own Activision?

After several years of rapid expansion through acquisitions of smaller game developers, Activision merged with Blizzard Entertainment in 2008 to create Activision Blizzard, forming one of the world's largest video game companies.

When will Activision release its second quarter results?

(Nasdaq: ATVI) intends to release its second quarter 2021 results after the close of the market on Tuesday, August 3, 2021. In conjunction with this release, Activision Blizzard will host a conference call that will be broadcast over the internet.

What is the name of the company that makes Call of Duty?

Activision Blizzard (NASDAQ: ATVI) and Take-Two Interactive (NASDAQ: TTWO) are two market leaders that operate some of the best-selling game franchises in the industry. Activision is known for Call of Duty and World of Warcraft and generates over $8 billion a year in bookings (a non-GAAP measure of revenue). Take-Two's Grand Theft Auto V has sold a staggering 145 million copies, which has pushed the company's bookings to over $3 billion.

Is Activision a civil rights company?

Former female employees of Activision Blizzard are coming forward to share their experiences at the company after a California state agency filed a civil rights lawsuit against the gaming giant alleging widespread sexual harassment and gender and racial discrimination.

Who is the Xbox chief?

Xbox Chief Phil Spencer is evaluating its relationship with Activision Blizzard Inc, the Microsoft-owned gaming console maker confirmed on Thursday amid allegations of sexual misconduct and equal pay violations against the video-game publisher. Spencer told the staff the Xbox gaming leadership team was "disturbed and deeply troubled by the horrific events and actions" at Activision, the report noted.

Should You Buy Activision Blizzard Before Microsoft Does?

On Jan. 18, news broke that Microsoft (NASDAQ: MSFT) had agreed to acquire video game developer Activision Blizzard (NASDAQ: ATVI) in a cash deal valued at $68.7 billion. With Activision now trading around $80 a share, there's a gap between where the stock is and Microsoft's agreed price to buy it. Microsoft has agreed to pay $95 per share for Activision once the deal closes, so why isn't the stock at that price?

The gap between shares' current price and what Microsoft's offering looks too good to pass up

Collin Brantmeyer began writing for Fool.com in 2022. He is the author of DEATH OF A CAR SALESMAN, a novel that Indie Reader describes as "a page-turner that takes murder mystery lovers on a wild ride of descriptive scenes, clever dialog, and classic 'whodunit' moments."

The details

Microsoft has agreed to acquire Activision Blizzard for $95 per share in an all-cash deal. As of Tuesday, Jan. 25, Activision Blizzard shares were trading for $80, 18.75% below its acquisition price.

What could go wrong

In any acquisition, there is a possibility that the deal will not be approved by federal regulators, especially as big tech continues to draw ire from Congress. If the deal does fall through, few other suitors can afford Activision's $68.7 billion price tag, and you'll be left owning shares of a company plagued with scandal over the past year.

The bottom line

This isn't Microsoft's first go-around with big acquisitions and federal regulators. In 2016, Microsoft acquired LinkedIn for $26.2 billion. Interestingly, that deal was approved in six short months.

When will Activision Blizzard end?

Earnings and revenue growth for Q3 2020, ending Sept. 30, 2020. It's not hard to imagine a future when Activision Blizzard has morphed nearly completely into an online gaming platform, a place where all its players subscribe to play. It's already there with World of Warcraft.

Why is SaaS a good business model?

SaaS is a wonderful business model because it's habit-forming and sticky. Distribution is a lot easier and upgrades are continuous.

Is Activision Blizzard a tech stock?

But isn't it fair to say that Activision Blizzard is also a tech stock? While it's true that this is a consumer-facing business (the pure "tech stock" only deals with companies on the back end), it's also producing software that you can download from the internet.

Is Activision a mature company?

It pays a dividend, so you might expect it to be a mature business with slow growth rates. But you'd be wrong. Activision Blizzard increased its revenues by 52% year over year in its most recent quarter, and profits jumped almost 200%. This is a fast-growing business right now.

Is it helpful to divide stocks?

While it can be helpful to divide stocks in this manner, sometimes it can mislead us. An entire sector might be overvalued, or undervalued, and if you are simply evaluating the peer group, you might be looking at trees and missing the forest.

Is Activision Blizzard becoming an SaaS company?

That's because the old model was pretty bad. Companies would pay millions to have expensive software installed across their enterprises, and it could take months to do it. In retrospect, it was kind of insane. No wonder most everybody switched to SaaS.