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Category: Activision Blizzard and Stock Market
Last updated: 6 July 2020 Stock price of Activision Blizzard: $77.51 We take a look at the press release from Activision Blizzard in which the group announced that Dawn Ostroff is joining their board of directors. Dawn has worked at Walt Disney, United Paramount as well as spotify.
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- Dawn has an incredible track record of leading her teams into the new age of digital entertainment, and we’re thrilled to welcome her to the Board - Bobby Kotick, CEO of Activision Blizzard "
About Activision Blizzard
Activision Blizzard, Inc. is a leading global developer and publisher of interactive entertainment content and services. We develop and distribute content and services on video game consoles, personal computers (“PC”s), and mobile devices. We also operate esports leagues and offer digital advertising within our content. The terms “Activision Blizzard,” the “Company,” “we,” “us,” and “our” are used to refer collectively to Activision Blizzard, Inc. and its subsidiaries. The Company was originally incorporated in California in 1979 and was reincorporated in Delaware in December 1992. In connection with the 2008 business combination by and among the Company (then known as Activision, Inc.), Vivendi S.A, and Vivendi Games, Inc., pursuant to which we acquired Blizzard Entertainment, Inc. (“Blizzard”), we were renamed Activision Blizzard, Inc. On February 23, 2016, we acquired King Digital Entertainment plc, a leading interactive mobile entertainment company ("King"), by purchasing all of its outstanding shares.
Quick facts about Activision Blizzard
- Activision Blizzard is listed on the NASDAQ under share code ticker: ATVI
- Number of employees of Activision Blizzard: 9 200
- Total net revenues: $6.489 billion
- Earnings per share: $1.95
- Shares in issue: 771 million
- Product development costs in 2019: $998 million
- Stockholders equity: $12.805
Segmental revenue
- Activision 2019 revenues: $ 2.219 billion
- Blizzard 2019 revenues:$ 1.676 billion
- King 2019 revenues: $ 2.031 billion
Revenue per platform:
- Console $ 1.92 billion
- PC: $1.718 billion
- Mobile and ancillary: $2.203 billion
- Other: $648 million
Press release announcing Dawn Ostroff joining Activision Blizzards board of directors
SANTA MONICA, Calif.--(BUSINESS WIRE)--Jun. 11, 2020-- Activision Blizzard, Inc. (NASDAQ: ATVI) today announced the appointment of Dawn Ostroff to its Board of Directors. Ms. Ostroff will join the Board as an independent director, effective immediately.
“Dawn has an incredible track record of leading her teams into the new age of digital entertainment, and we’re thrilled to welcome her to the Board,” said Bobby Kotick, CEO of Activision Blizzard. “There are few executives that have spanned television, film, media and music, but Dawn has touched them all and left her mark in every industry. With her distinguished career background and perspective, she is an amazing asset to the Board and management team as we propel our business forward.”
Dawn Ostroff is the Chief Content and Advertising Business Officer of Spotify Technology S.A., an international media services provider. She has held the role of Chief Content Officer since 2018 and, in January 2020, became the Chief Content and Advertising Business Officer.
“Throughout my career, I’ve always been drawn to companies willing to shift the paradigm of entertainment and media,” said Dawn Ostroff. “With a long history of success in gaming and interactive experiences, Activision Blizzard has been established as a clear global leader in digital content and I look forward to joining the Board to support the company's further growth across an array of media and entertainment platforms.”
Prior to joining Spotify, Ms. Ostroff co-founded Condé Nast Entertainment, a studio and distribution network for film, television, premium digital video, social media and virtual reality, where she served as the President from 2011 to 2018. Ms. Ostroff held a number of positions in the media and entertainment industry before founding Condé Nast Entertainment, including executive leadership positions at The CW Television Network, United Paramount Network, Lifetime Television, Twentieth Century Fox Film and The Walt Disney Company.
“Dawn has an incredible track record of leading her teams into the new age of digital entertainment, and we’re thrilled to welcome her to the Board,” said Bobby Kotick, CEO of Activision Blizzard. “There are few executives that have spanned television, film, media and music, but Dawn has touched them all and left her mark in every industry. With her distinguished career background and perspective, she is an amazing asset to the Board and management team as we propel our business forward.”
Dawn Ostroff is the Chief Content and Advertising Business Officer of Spotify Technology S.A., an international media services provider. She has held the role of Chief Content Officer since 2018 and, in January 2020, became the Chief Content and Advertising Business Officer.
“Throughout my career, I’ve always been drawn to companies willing to shift the paradigm of entertainment and media,” said Dawn Ostroff. “With a long history of success in gaming and interactive experiences, Activision Blizzard has been established as a clear global leader in digital content and I look forward to joining the Board to support the company's further growth across an array of media and entertainment platforms.”
Prior to joining Spotify, Ms. Ostroff co-founded Condé Nast Entertainment, a studio and distribution network for film, television, premium digital video, social media and virtual reality, where she served as the President from 2011 to 2018. Ms. Ostroff held a number of positions in the media and entertainment industry before founding Condé Nast Entertainment, including executive leadership positions at The CW Television Network, United Paramount Network, Lifetime Television, Twentieth Century Fox Film and The Walt Disney Company.
Products of Activision Blizzard
We develop interactive entertainment content and services, principally for console, PC, and mobile devices, and we market and sell our games through retail and digital distribution channels. Our products span various genres, including first and third-person action/adventure, role-playing, strategy, and “match three,” among others. We primarily offer the following products and services: • full-games, which typically provide access to main game content, primarily for console or PC; • downloadable content, which provides players with additional in-game content to purchase following the purchase of a full game; • microtransactions, which typically provide relatively small pieces of additional in-game content or enhancements to gameplay, generally at relatively low price points; and • subscriptions for players in our World of Warcraft franchise that provide for continual access to the game content. Providing additional opportunities for player investment outside of full-game purchases has allowed us to shift from our historical seasonality to a more consistently recurring and year-round revenue model. In addition, if executed properly, it allows us to increase player engagement with our games and content
We focus on developing enduring franchises backed by well-designed, high-quality games with regular content updates. We build interactive entertainment content with the potential for broad reach, sustainable engagement and year-round player investment. It is our experience that enduring franchises then serve as the basis for sequels, prequels, and related new products and content that can be released over an extended period of time. We believe that the development and distribution of products and content based on established franchises enhances predictability of revenues and the probability of high unit volume sales and operating profits. We intend to continue development of content based on our owned franchises in the future
We focus on developing enduring franchises backed by well-designed, high-quality games with regular content updates. We build interactive entertainment content with the potential for broad reach, sustainable engagement and year-round player investment. It is our experience that enduring franchises then serve as the basis for sequels, prequels, and related new products and content that can be released over an extended period of time. We believe that the development and distribution of products and content based on established franchises enhances predictability of revenues and the probability of high unit volume sales and operating profits. We intend to continue development of content based on our owned franchises in the future
Competition of Activision Blizzard
Activision Blizzard (ATVI) stock performance
The following graph and table compare the cumulative total stockholder return on our common stock, the Nasdaq Composite Index, the S&P 500 Index, and the RDG Technology Composite Index. The graph and table assume that $100 was invested on December 31, 2014, and that dividends were reinvested daily. The stock price performance on the following graph and table is not necessarily indicative of future stock price performance
Over the 5 year period Activision provided an average annual return of 13.7% while the S&P 500 returned 11.7%. So Activision Blizzard's stock price grew at 1.17 times at that of the S&P 500
Our latest Activision Blizzard stock valuation (6 May 2020)
Based on Activision Blizzard's latest earnings report and the fiscal guidance what do we value the group's stock at? Based on reported earnings and the fiscal guidance provided our valuation models provides a target (full value) price for Activision Blizzard of $56.20 (up from our 4th quarter 2019 earnings report valuation of Activision Blizzard). We therefore believe the stock of Activision Blizzard is overvalued.
We usually recommend that long term fundamental or value investors enter a stock at least 10% below our target (full value) price which in this case is $56.20. We therefore believe a good entry point into Activision Blizzard stock is at $50.60 or below. We expect the stock of Activision to pull back from its current levels to levels closer to our target price (full value price) in coming weeks and months.
We usually recommend that long term fundamental or value investors enter a stock at least 10% below our target (full value) price which in this case is $56.20. We therefore believe a good entry point into Activision Blizzard stock is at $50.60 or below. We expect the stock of Activision to pull back from its current levels to levels closer to our target price (full value price) in coming weeks and months.