ATVI

Activision Blizzard Inc

TMT


Presented:02/19/2014
Price:$19.94
Cap:$13.90B
Current Price:$94.42
Cap:$72.42B

Presented

Date02/19/2014
Price$19.94
Market Cap$13.90B
Ent Value$14.12B
P/E Ratio36.35x
Book Value$7.68
Div YieldN/A
Shares O/S695.43M
Ave Daily Vol7,490,000
Short Int2.80%

Current

Price$94.42
Market Cap$72.42B
Activision Blizzard, Inc. publishes online, personal computer (PC), console, handheld, and mobile interactive entertainment products worldwide. It operates in three segments: Activision, Blizzard, and Distribution. The Activision segment develops and publishes interactive software products and content. The Blizzard segment develops, markets, and sells role-playing action and strategy PC-based computer games, as well as online subscription-based games in the massively multiplayer online role-playing game category. This segment also maintains a proprietary online-game related service, Battle.net. The Distribution segment provides warehousing, logistical, and sales distribution services to third-party publishers of interactive entertainment software and hardware products. Activision Blizzard, Inc. sells its products to direct mass-market retailers, consumer electronics stores, discount warehouses, and game specialty stores through direct-to-retail basis, third-party distribution, and licensing arrangements, as well as digital online delivery methods. The company is headquartered in Santa Monica, California. Activision Blizzard, Inc. is a subsidiary of Vivendi Société Anonyme.

Highlights

The presenter acknowledged the risk that he may be a little early in building his short position in video game publishers like Electronic Arts (EA) and Activision (ATVI), but he is convinced that this most recent console cycle (PS4 sales were decent but demand for the new Xbox was “disappointing”) did not create the larger installed base bulls were hoping for. If his thesis is correct, it is likely that the secular growth story in the industry has run its course; “the tablet and smartphone have killed the tail of the video game story.”

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Idea Discussion

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