S&P 500
7,582.20
+0.03%
Dow Jones
51,018.80
+0.58%
Nasdaq 100
30,344.40
+0.25%
Russell 2000
2,916.31
-0.54%
FTSE 100
10,378.60
-0.32%
Nikkei 225
66,231.90
+0.67%

Media

Activision Blizzard Under the Gun After Bungie Split

Photo of Chris Lange
By Chris Lange Updated Published
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Activision Blizzard Under the Gun After Bungie Split

© hobo_018 / iStock

Activision Blizzard Inc. (NASDAQ: ATVI) shares plunged on Friday after the video game giant announced that it would be parting ways with famed gaming studio Bungie. Along with this split, Bungie will be taking control of its Destiny game franchise, which has been one of the most successful ever.

Unfortunately, this split comes at a difficult time for Activision, which recently saw some changes to its executive leadership team. And it doesn’t help that Bungie will be retaining the rights to Destiny.

In a filing with the U.S. Securities and Exchange Commission, Activision detailed that it does not expect to see any material revenue, operating income or operating loss from the Destiny franchise in 2019. Currently, analysts are calling for revenues of $7.64 billion for the 2019 full year.

The Destiny franchise first launched in September 2014. While Destiny has had a tough go of things through its expansions, patches, updates and a sequel, it still has been wildly popular in the gaming community.

[nativounit]

In a blog post, Bungie said:

We have enjoyed a successful eight-year run and would like to thank Activision for their partnership on Destiny. Looking ahead, we’re excited to announce plans for Activision to transfer publishing rights for Destiny to Bungie. With our remarkable Destiny community, we are ready to publish on our own, while Activision will increase their focus on owned IP projects.

Shares of Activision Blizzard were last seen down about 10% at $46.43, in a 52-week range of $43.71 to $84.68. The consensus price target is $70.81.

[recirclink id=520952]
[wallst_email_signup]

DISCLOSURE:
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org). Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov. Probability of Member receiving $1,000 is a probability of 0.026%; If you don’t make a selection in 30 days, you’ll no longer qualify for the promo. Customer must fund their account with a minimum of $50.00 to qualify. Other fees, such as exchange fees, may apply. Please view our fee disclosure to view a full listing of fees. Investing in alternative investments and/or strategies may not be suitable for all investors and involves unique risks, including the risk of loss. An investor should consider their individual circumstances and any investment information, such as a prospectus, prior to investing. Interval Funds are illiquid instruments, the ability to trade on your timeline may be restricted. Brokerage and Active investing products offered through SoFi Securities LLC, Member FINRA(www.finra.org) /SIPC(www.sipc.org). There are limitations with fractional shares to consider before investing. During market hours fractional share orders are transmitted immediately in the order received. There may be system delays from receipt of your order until execution and market conditions may adversely impact execution prices. Outside of market hours orders are received on a not held basis and will be aggregated for each security then executed in the morning trade window of the next business day at market open. Share will be delivered at an average price received for executing the securities through a single batched order. Fractional shares may not be transferred to another firm. Fractional shares will be sold when a transfer or closure request is initiated. Please consider that selling securities is a taxable event. Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire investment Before trading options please review the Characteristics and Risks of Standardized Options  Investing in an Initial Public Offering (IPO) involves substantial risk, including the risk of loss. Further, there are a variety of risk factors to consider when investing in an IPO, including but not limited to, unproven management, significant debt, and lack of operating history. For a comprehensive discussion of these risks please refer to SoFi Securities’ IPO Risk Disclosure Statement This should not be considered a recommendation to participate in IPOs and investors should carefully read the offering prospectus to determine whether an offering is consistent with their investment objectives, risk tolerance, and financial situation. New offerings generally have high demand and there are a limited number of shares available for distribution to participants. Many customers may not be allocated shares and share allocations may be significantly smaller than the shares requested in the customer’s initial offer (Indication of Interest). For more information on the allocation process please visit IPO Allocation.
Follow 24/7 Wall St. on Google
Photo of Chris Lange
About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.

Continue Reading

What to Expect When Activision Blizzard Reports After the Close
Chris Lange |

What to Expect When Activision Blizzard Reports After the Close

Activision Blizzard is scheduled to release its fourth-quarter financial results after the markets close on Tuesday.

Is Activision Poised for Layoffs?
Chris Lange |

Is Activision Poised for Layoffs?

Activision Blizzard shares dipped on Monday after reports that the video game firm plans to announce some job cuts along…

Chris Lange |

Activision’s ‘Taken King’ Sets Otherworldly Records

Activision Blizzard continued on its tear of record-breaking games when it released its newest installment in the Destiny series.

Chris Lange |

Is Destiny Video Game Sales Record Truly a Disappointment?

It is hard to imagine that $325 million on a video game release in the first five days is a…

Activision and Sony Gear Up for Highly Anticipated Destiny Release
Chris Lange |

Activision and Sony Gear Up for Highly Anticipated Destiny Release

Activision Blizzard is set to deliver a highly anticipated expansion in its Destiny franchise, easily one of the most anticipated…

Activision Blizzard Sinks on Missed Guidance
Chris Lange |

Activision Blizzard Sinks on Missed Guidance

Activision Blizzard, Inc. (NASDAQ: ATVI) released third-quarter financial results after markets closed on Thursday. The company posted $0.49 in earnings…

Chris Lange |

Destiny Launch Adding Handily to Winter Sales at GameStop

The product cycle for GameStop is continuing to look stronger as more major titles are being previewed and then released.

Chris Lange |

Activision Earnings and Buyback Dominated by Share Sale Filing and Guidance (Updated)

Activision Blizzard, one of the biggest and most well-known game producers in the world, reported its fourth-quarter results Thursday after…

If You Invested $1000 in Activision Blizzard, Inc a Decade Ago, This is How Much It’d Be Worth Now
247patrick |

If You Invested $1000 in Activision Blizzard, Inc a Decade Ago, This is How Much It’d Be Worth Now

How much a stock’s price changes over time is a significant driver for most investors. Not only can price performance…

Top Gaining Stocks

Dell Technologies
DELL • Vol: 42,366,555
NetApp
NTAP • Vol: 15,911,807
ServiceNow
NOW • Vol: 68,243,561
IBM
IBM • Vol: 28,527,546
Hewlett Packard Enterprise
HPE • Vol: 86,996,387

Top Losing Stocks

Coterra Energy
CTRA • Vol: 73,319,495
Clorox
CLX • Vol: 4,744,001
ResMed
RMD • Vol: 3,526,686
Intel
INTC • Vol: 191,680,425
Skyworks Solutions
SWKS • Vol: 5,407,806