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Activision Blizzard Stock Drops After Bungie Split – Game Rant




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The beginning of 2019 was marked by a series of changes in Activision Blizzard, with the company's CFO, Spencer Neumann, who leaves to join Netflix and Blizzard CFO Amrita Ahuja by taking a new position in Square Inc. Today has seen another change when it was announced that the company is that sold the publishing rights to the fate of Bungie and this led to a significant decline in the value of Activision Blizzard's shares.

In particular, the company's shares fell by over 6.5% following the announcement that Activision Blizzard would separate from Destiny 2 . This decline occurred in after hours trading, after a day when the stock rose by 1% to $ 51.35, as the announcement was made after the market was already closed.

Indeed, investors seem to be worried about the implications of losing Destiny as revenue stream and Stifel analysts suggest that the absence of the science fiction shooter "will create a vacuum in the content pipeline of Activision Publishing. " Having said that, analysts also indicate that the overall financial consequences are likely to be limited and Activision Blizzard seems to share this sentiment, stating in a securities deposit that does not expect an "operational loss".

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When Activision Blizzard started publishing Destiny, following a partnership with Bungie started in 2010, the company's shares were on the rise. In 2015, it reached its all-time high before meeting some noticeable drops, which culminated last year with the company that ended 2018 with a 26% decline in the market.

Some analysts cited concerns about the company's release program in 2019 as guilty of these losses, indicating a controversial representation in particular at last year's BlizzCon. While Activision Blizzard indicates that the loss of Destiny will have no impact on its bottom line, the absence of the stock from the company's portfolio is certainly not improving the offers of the year.

Last November, Activision Blizzard indicated that the financial performance of Destiny had fallen below expectations, leading to the director of Destiny 2 Luke Smith, to devote himself to social media in defense of the title. Clearly, the two companies have not seen the same eye on the franchise and the time will tell exactly the impact that the split has on the finances of the company.

Destiny 2 is now available on PC, PS4 and Xbox One.

Source: The Wall Street Journal


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