activision blizzard buying candy crush for 5 billion raises questions

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Activision Blizzard Inc  ATVI

Summary (from latest annual report – 2015)

  • Total equity: 13.7 billion USD
  • Market Cap is 25.3 billion USD ( last price of the stock is 34.42 USD)
  • Activision Blizzard Inc is a developer and publisher of online, personal computer, video game console, handheld, mobile and tablet games.
  • Equity of total company increased from 12.99 billion USD in 2014 to 13.7 billion in 2015
  • Company has 1.82 billion USD in cash on account (from latest annual report2015 year)
  • Total equity – cash on account = 13.7 billion usd – 1.82 billion usd = 11.88 billion usd
  • In 2015 company has 4.07 billion USD long-term debt, short – term debt was zero(In 2014 company had 4.32 billion USD long-term debt , short-term debt was zero)
  • ATVI balance sheet has become strongerin 2015 (In latest annual report - total equity increased to 13.7 billion  USD from 12.99 billion USD in 2014, total debt was 4.07 billion USD in 2015)
  • Company's revenue increased in 2015 to 4.66 billion USD from 4.40 billion in 2014
  • Net income in 2015 was 892 million USD, Net income in 2014 was 835 million USD
  • In 2015 company paid 170 million usd dividend to its shareholders

Activision Blizzard

Activision Blizzard, Inc. is one of the largest interactive gaming and entertainment companies in the world. Activision Blizzard Inc is a developer and publisher of online, personal computer, video game console, handheld, mobile and tablet games. Its business currently includes five business units: Activision, Blizzard Entertainment, Major League Gaming,  Activision Blizzard Studios and King Digital Entertainment.

In December 2007, Activision announced that the company and its assets would merge with fellow games developer and publisher Vivendi Games. Vivendi was the majority shareholder, with a 52% stake in the company, the rest of the shares were held by institutional and private investors. On July 25, 2013, Activision Blizzard announced the purchase of 429 million shares from owner Vivendi for $5.83 billion, dropping the shareholder from a 63% stake to 11.8% by the end of the deal in September. At the conclusion of the deal, Vivendi was no longer Activision Blizzard's parent company, and Activision Blizzard became an independent company as a majority of the shares became owned by the public (Vivendi sold half its remaining stake on May 22, 2014, reducing its ownership to 5.8%).

Company products include :Call of Duty series,Spyro the,Dragon series,Destiny,Guitar Hero series,Skylanders series,Tony Hawk's series, Diablo series, Heroes of the Storm, Overwatch, StarCraft series, Warcraft series..

 

 Activision Blizzard standalone subsidiaries :

  • Infinity Ward®, Inc. - In 2002 Activision Blizzard made an equity investment in Infinity Ward, a newly formed studio comprising 22 of the individuals who developed Medal of Honor: Allied Assault – worth 30 million usd
  • Freestyle Games Ltd - In 2008 Activision Blizzard acquired UK games studio FreeStyleGames for undisclosed amount - worth 50 million usd
  • King - Activision Blizzard announced on November 2, 2015 that it would acquire social gaming company King, creator of the popular casual game Candy Crush Saga, for 5.9 billion usd
  • MLG - Activision Blizzard acquired MLG on January 4, 2016 for 46 million usd
  • Standalone subsidiaries : CDH Consolidated, Treyarch® Corporation and Sledgehammer Games worth 250 million usd

 

 

Total = 6.27 billion usd

Opinion about the company

Fundamentally it is a good company and in the future we can expect its growth (Total debt is big (4.07 billion usd), company has 1.82 billion USD in cash on account, ROE is around 11 %).

 

 

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