Announcement • Oct 24
Activision Blizzard Files Form 15 Activision Blizzard, Inc. has announced that it has filed a Form 15 with the Securities and Exchange Commission to voluntarily deregister its Common Stock, $0.000001 par value per share under the Securities Exchange Act of 1934, as amended. The par value of the company's Common Stock was $0.000001per share. On October 13, 2023, pursuant to that certain Agreement and Plan of Merger, dated as of January 18, 2022, as amended from time to time, by and among Microsoft Corporation, a Washington corporation (“Microsoft”), Anchorage Merger Sub Inc., a Delaware corporation and a wholly owned subsidiary of Microsoft (“Merger Sub”), and Activision Blizzard, Inc. (the “Company”), Merger Sub merged with and into the Company, with the Company surviving as a wholly-owned subsidiary of Microsoft (the “Merger”). As a result of the Merger, the issued and outstanding Common Stock, par value $0.000001 per share, of the Company was cancelled, and the Company became a wholly-owned subsidiary of Microsoft. Announcement • Oct 19
Activision Blizzard, Inc.(NasdaqGM:ATVI) dropped from FTSE All-World Index (USD) Activision Blizzard, Inc.(NasdaqGM:ATVI) dropped from FTSE All-World Index (USD) Announcement • Aug 24
Microsoft Submits New Plan in £54 Billion Takeover Battle with UK Competition Watchdog The competition watchdog stressed “this is not a green light” as it agreed to look at a fresh proposal from Microsoft Corporation (NasdaqGS:MSFT) which the company hopes will allow its $69 billion (£54 billion) takeover of Activision Blizzard, Inc. (NasdaqGS:ATVI) to go ahead. The global technology giant said it has submitted a new version of the blocked deal, which will now be reviewed by the Competition and Markets Authority (CMA). It came as the regulator confirmed on August 22, 2023 that Microsoft’s original plan to buy the computer games company “cannot proceed”. Under the new proposal, Microsoft would sell off its rights to offer games via the cloud for new or existing Activision PC or console games for the next 15 years outside the European Economic Area (EEA). It will instead sell those rights to Ubisoft, a rival developer known for the Assassin’s Creed and Far Cry games series. This is designed to ensure that gamers have access to Activision Blizzard’s games, even on consoles and computers not made by Microsoft. The CMA will now launch a new probe into this deal, a so-called Phase 1 investigation. CMA chief executive Sarah Cardell said: “The CMA has August 22, 2023 confirmed that Microsoft’s acquisition of Activision, as originally proposed, cannot proceed. “Separately, Microsoft has notified a new and restructured deal, which is substantially different from what was put on the table previously. “This is not a green light. We will carefully and objectively assess the details of the restructured deal and its impact on competition, including in light of third-party comments”. In January 2022 Microsoft announced that it planned to buy Activision Blizzard, the company behind the Call Of Duty and World Of Warcraft games, for an eye-watering sum. Upcoming Dividend • Jul 25
Upcoming dividend of US$0.99 per share at 1.1% yield Eligible shareholders must have bought the stock before 01 August 2023. Payment date: 17 August 2023. Payout ratio is a comfortable 42% and this is well supported by cash flows. Trailing yield: 1.1%. Lower than top quartile of German dividend payers (4.8%). Lower than average of industry peers (1.9%). Reported Earnings • Jul 20
Second quarter 2023 earnings released: EPS: US$0.75 (vs US$0.36 in 2Q 2022) Second quarter 2023 results: EPS: US$0.75 (up from US$0.36 in 2Q 2022). Revenue: US$2.21b (up 34% from 2Q 2022). Net income: US$587.0m (up 110% from 2Q 2022). Profit margin: 27% (up from 17% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 5.7% p.a. on average during the next 3 years, compared to a 2.4% growth forecast for the Entertainment industry in Germany. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Recent Insider Transactions • May 07
Independent Director recently bought €905k worth of stock On the 3rd of May, Peter Nolan bought around 13k shares on-market at roughly €68.73 per share. This transaction amounted to 5.9% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Despite this recent purchase, insiders have collectively sold €2.1m more in shares than they bought in the last 12 months. Reported Earnings • Apr 27
First quarter 2023 earnings released: EPS: US$0.94 (vs US$0.51 in 1Q 2022) First quarter 2023 results: EPS: US$0.94 (up from US$0.51 in 1Q 2022). Revenue: US$2.38b (up 35% from 1Q 2022). Net income: US$740.0m (up 87% from 1Q 2022). Profit margin: 31% (up from 22% in 1Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 5.3% p.a. on average during the next 3 years, compared to a 4.5% growth forecast for the Entertainment industry in Germany. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. Recent Insider Transactions • Mar 17
President & COO recently sold €647k worth of stock On the 13th of March, Daniel Alegre sold around 9k shares on-market at roughly €73.19 per share. This transaction amounted to 93% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Daniel has been a net seller over the last 12 months, reducing personal holdings by €2.0m. Reported Earnings • Feb 08
Full year 2022 earnings released: EPS: US$1.94 (vs US$3.47 in FY 2021) Full year 2022 results: EPS: US$1.94 (down from US$3.47 in FY 2021). Revenue: US$7.53b (down 14% from FY 2021). Net income: US$1.51b (down 44% from FY 2021). Profit margin: 20% (down from 31% in FY 2021). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 9.0% p.a. on average during the next 3 years, compared to a 3.0% growth forecast for the Entertainment industry in Germany. Over the last 3 years on average, earnings per share has increased by 3% per year whereas the company’s share price has increased by 7% per year. Announcement • Jan 12
Activision Blizzard, Inc. to Report Q4, 2022 Results on Feb 06, 2023 Activision Blizzard, Inc. announced that they will report Q4, 2022 results at 4:00 PM, US Eastern Standard Time on Feb 06, 2023 Buying Opportunity • Nov 25
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 12%. The fair value is estimated to be €90.36, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.1% over the last 3 years. Earnings per share has grown by 9.4%. For the next 3 years, revenue is forecast to grow by 9.7% per annum. Earnings is also forecast to grow by 14% per annum over the same time period. Reported Earnings • Nov 09
Third quarter 2022 earnings released: EPS: US$0.56 (vs US$0.82 in 3Q 2021) Third quarter 2022 results: EPS: US$0.56 (down from US$0.82 in 3Q 2021). Revenue: US$1.78b (down 14% from 3Q 2021). Net income: US$435.0m (down 32% from 3Q 2021). Profit margin: 24% (down from 31% in 3Q 2021). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Entertainment industry in Germany. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has increased by 15% per year, which means it is tracking significantly ahead of earnings growth. Recent Insider Transactions • Sep 14
President & COO recently sold €778k worth of stock On the 9th of September, Daniel Alegre sold around 10k shares on-market at roughly €77.85 per share. This transaction amounted to 94% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger sale from another insider worth €805k. Daniel has been a net seller over the last 12 months, reducing personal holdings by €2.4m. Recent Insider Transactions • Aug 05
Chief Financial Officer recently sold €805k worth of stock On the 3rd of August, Armin Zerza sold around 10k shares on-market at roughly €79.14 per share. This was the largest sale by an insider in the last 3 months. Armin has been a seller over the last 12 months, reducing personal holdings by €1.0m. Reported Earnings • Aug 02
Second quarter 2022 earnings released: EPS: US$0.36 (vs US$1.13 in 2Q 2021) Second quarter 2022 results: EPS: US$0.36 (down from US$1.13 in 2Q 2021). Revenue: US$1.64b (down 28% from 2Q 2021). Net income: US$280.0m (down 68% from 2Q 2021). Profit margin: 17% (down from 38% in 2Q 2021). The decrease in margin was driven by lower revenue. Over the next year, revenue is forecast to grow 14%, compared to a 131% growth forecast for the industry in Germany. Recent Insider Transactions • Jun 04
Chief Financial Officer recently sold €240k worth of stock On the 1st of June, Armin Zerza sold around 3k shares on-market at roughly €72.79 per share. In the last 3 months, there was an even bigger sale from another insider worth €1.1m. This was Armin's only on-market trade for the last 12 months. Recent Insider Transactions • May 11
Senior VP & Chief Accounting Officer recently sold €810k worth of stock On the 5th of May, Jesse Yang sold around 11k shares on-market at roughly €74.89 per share. In the last 3 months, there was an even bigger sale from another insider worth €1.1m. Insiders have been net sellers, collectively disposing of €1.8m more than they bought in the last 12 months. Reported Earnings • Apr 27
First quarter 2022 earnings released: EPS: US$0.51 (vs US$0.80 in 1Q 2021) First quarter 2022 results: EPS: US$0.51 (down from US$0.80 in 1Q 2021). Revenue: US$1.77b (down 22% from 1Q 2021). Net income: US$395.0m (down 36% from 1Q 2021). Profit margin: 22% (down from 27% in 1Q 2021). The decrease in margin was driven by lower revenue. Over the next year, revenue is forecast to grow 1.1%, compared to a 181% growth forecast for the industry in Germany. Upcoming Dividend • Apr 06
Upcoming dividend of US$0.47 per share Eligible shareholders must have bought the stock before 13 April 2022. Payment date: 06 May 2022. Payout ratio is a comfortable 14% and this is well supported by cash flows. Trailing yield: 0.6%. Lower than top quartile of German dividend payers (3.8%). Lower than average of industry peers (1.6%). Recent Insider Transactions • Mar 23
President & COO recently sold €1.1m worth of stock On the 14th of March, Daniel Alegre sold around 15k shares on-market at roughly €72.52 per share. This was the largest sale by an insider in the last 3 months. Daniel has been a seller over the last 12 months, reducing personal holdings by €2.7m. Reported Earnings • Feb 04
Full year 2021 earnings: EPS in line with expectations, revenues disappoint Full year 2021 results: EPS: US$3.47 (up from US$2.85 in FY 2020). Revenue: US$8.80b (up 8.9% from FY 2020). Net income: US$2.70b (up 23% from FY 2020). Profit margin: 31% (up from 27% in FY 2020). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 4.3%. Over the next year, revenue is forecast to grow 2.7%, compared to a 345% growth forecast for the industry in Germany. Valuation Update With 7 Day Price Move • Jan 19
Investor sentiment improved over the past week After last week's 29% share price gain to €72.59, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 25x in the Entertainment industry in Europe. Total loss to shareholders of 7.4% over the past year. Simply Wall St's valuation model estimates the intrinsic value at €102 per share. Reported Earnings • Nov 03
Third quarter 2021 earnings released: EPS US$0.82 (vs US$0.78 in 3Q 2020) The company reported a solid third quarter result with improved earnings and revenues, although profit margins were flat. Third quarter 2021 results: Revenue: US$2.07b (up 5.9% from 3Q 2020). Net income: US$639.0m (up 5.8% from 3Q 2020). Profit margin: 31% (in line with 3Q 2020). Executive Departure • Oct 01
Chief People Officer Claudine Naughton has left the company On the 21st of September, Claudine Naughton's tenure as Chief People Officer ended after 2.1 years in the role. We don't have any record of a personal shareholding under Claudine's name. A total of 3 executives have left over the last 12 months. The current median tenure of the management team is less than a year, which is considered inexperienced in the Simply Wall St Risk Model. Executive Departure • Sep 24
Chief People Officer Claudine Naughton has left the company On the 21st of September, Claudine Naughton's tenure as Chief People Officer ended after 2.1 years in the role. We don't have any record of a personal shareholding under Claudine's name. A total of 3 executives have left over the last 12 months. The current median tenure of the management team is 1.33 years, which is considered inexperienced in the Simply Wall St Risk Model. Executive Departure • Sep 24
Chief People Officer Claudine Naughton has left the company On the 21st of September, Claudine Naughton's tenure as Chief People Officer ended after 2.1 years in the role. We don't have any record of a personal shareholding under Claudine's name. A total of 3 executives have left over the last 12 months. The current median tenure of the management team is 1.33 years, which is considered inexperienced in the Simply Wall St Risk Model. Recent Insider Transactions • Aug 14
Independent Director recently bought €1.4m worth of stock On the 6th of August, Peter Nolan bought around 21k shares on-market at roughly €68.67 per share. This was the largest purchase by an insider in the last 3 months. Despite this recent purchase, insiders have collectively sold €26m more in shares than they bought in the last 12 months. Recent Insider Transactions • Aug 12
Independent Director recently bought €1.4m worth of stock On the 6th of August, Peter Nolan bought around 21k shares on-market at roughly €68.67 per share. This was the largest purchase by an insider in the last 3 months. Despite this recent purchase, insiders have collectively sold €26m more in shares than they bought in the last 12 months. Reported Earnings • Aug 05
Second quarter 2021 earnings released: EPS US$1.13 (vs US$0.75 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: US$2.30b (up 19% from 2Q 2020). Net income: US$876.0m (up 51% from 2Q 2020). Profit margin: 38% (up from 30% in 2Q 2020). The increase in margin was driven by higher revenue. Executive Departure • Aug 05
President & CEO of Blizzard Entertainment Inc J. Brack has left the company During their tenure, earnings grew by 74% annually compared to the industry average of 20%. On the 3rd of August, J. Brack left the company after 2.8 in the role. We don't have any record of a personal shareholding under Brack's name. A total of 2 executives have left over the last 12 months. The current median tenure of the management team is 1.25 years, which is considered inexperienced in the Simply Wall St Risk Model. Executive Departure • Aug 05
President & CEO of Blizzard Entertainment Inc J. Brack has left the company During their tenure, earnings grew by 74% annually compared to the industry average of 20%. On the 3rd of August, J. Brack left the company after 2.8 in the role. We don't have any record of a personal shareholding under Brack's name. A total of 2 executives have left over the last 12 months. The current median tenure of the management team is 1.25 years, which is considered inexperienced in the Simply Wall St Risk Model. Executive Departure • Jun 15
Chief Legal Officer Christopher Walther has left the company On the 14th of June, Christopher Walther's tenure as Chief Legal Officer ended after 11.6 years in the role. As of March 2021, Christopher still personally held 39.68k shares (€3.2m worth at the time). Christopher is the only executive to leave the company over the last 12 months. The current median tenure of the management team is 1.25 years, which is considered inexperienced in the Simply Wall St Risk Model. Recent Insider Transactions • May 15
Independent Director recently bought €1.6m worth of stock On the 10th of May, Peter Nolan bought around 20k shares on-market at roughly €78.18 per share. This was the largest purchase by an insider in the last 3 months. Despite this recent purchase, insiders have collectively sold €52m more in shares than they bought in the last 12 months. Reported Earnings • May 06
First quarter 2021 earnings released: EPS US$0.80 (vs US$0.66 in 1Q 2020) The company reported a solid first quarter result with improved earnings and revenues, although profit margins were flat. First quarter 2021 results: Revenue: US$2.28b (up 27% from 1Q 2020). Net income: US$619.0m (up 23% from 1Q 2020). Profit margin: 27% (in line with 1Q 2020). Upcoming Dividend • Apr 07
Upcoming dividend of US$0.47 per share Eligible shareholders must have bought the stock before 14 April 2021. Payment date: 06 May 2021. Trailing yield: 0.5%. Lower than top quartile of German dividend payers (3.2%). Lower than average of industry peers (1.8%). Reported Earnings • Feb 25
Full year 2020 earnings released: EPS US$2.85 (vs US$1.96 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: US$8.09b (up 25% from FY 2019). Net income: US$2.20b (up 46% from FY 2019). Profit margin: 27% (up from 23% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 44% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Analyst Estimate Surprise Post Earnings • Feb 25
Revenue beats expectations Revenue exceeded analyst estimates by 3.1%. Over the next year, revenue is forecast to grow 5.4%, compared to a 3.8% growth forecast for the Entertainment industry in Germany. Reported Earnings • Feb 07
Full year 2020 earnings released: EPS US$2.85 (vs US$1.96 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: US$8.09b (up 25% from FY 2019). Net income: US$2.20b (up 46% from FY 2019). Profit margin: 27% (up from 23% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 44% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Analyst Estimate Surprise Post Earnings • Feb 07
Revenue beats expectations Revenue exceeded analyst estimates by 3.1%. Over the next year, revenue is forecast to grow 5.2%, compared to a 3.4% growth forecast for the Entertainment industry in Germany. Is New 90 Day High Low • Feb 07
New 90-day high: €84.13 The company is up 27% from its price of €66.31 on 06 November 2020. The German market is up 15% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Entertainment industry, which is up 26% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €68.47 per share. Is New 90 Day High Low • Jan 19
New 90-day high: €74.98 The company is up 10.0% from its price of €68.14 on 21 October 2020. The German market is also up 10.0% over the last 90 days, indicating the company’s price trend is similar to the market over that time. However, it underperformed the Entertainment industry, which is up 28% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €69.85 per share. Is New 90 Day High Low • Dec 16
New 90-day high: €70.72 The company is up 3.0% from its price of €68.82 on 16 September 2020. The German market is up 2.0% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Entertainment industry, which is up 14% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €59.00 per share. Recent Insider Transactions • Dec 11
Independent Director recently sold €665k worth of stock On the 4th of December, Casey Wasserman sold around 10k shares on-market at roughly €66.54 per share. In the last 3 months, there was an even bigger sale from another insider worth €25m. Insiders have been net sellers, collectively disposing of €53m more than they bought in the last 12 months. Is New 90 Day High Low • Nov 11
New 90-day low: €63.76 The company is down 9.0% from its price of €69.77 on 13 August 2020. The German market is flat over the last 90 days, indicating the company underperformed over that time. It also underperformed the Entertainment industry, which is up 26% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €50.27 per share. Recent Insider Transactions • Nov 06
Chairman of the Board recently sold €25m worth of stock On the 4th of November, Brian Kelly sold around 375k shares on-market at roughly €65.85 per share. This was the largest sale by an insider in the last 3 months. Brian has been a seller over the last 12 months, reducing personal holdings by €50m. Analyst Estimate Surprise Post Earnings • Nov 03
Revenue beats expectations Revenue exceeded analyst estimates by 4.2%. Over the next year, revenue is forecast to grow 8.0% compared to a 32% decline forecast for the Entertainment industry in Germany.