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Blizzard Entertainment Inc Analysis - Paper Sample

Date:  2021-05-25 13:56:18
3 pages  (806 words)
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Blizzard Entertainment, Inc. is an American company founded on the 8th February 1991; its headquarters is in Irvine, Californian. The company has specialized in video game development and publishing. It is currently operating as an Activision Blizzard division. Activision Blizzard. Inc is recognized worldwide as one of the prominent entertainment and interactive gaming in the world. It is famous subsidiaries, Activision and Blizzard Entertainment, have generated quite some the most famous and bestselling video games like Warcraft, Guitar Hero, Diablo, and Call of Duty.

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Blizzard Entertainment Shares

Currently, the company traded on the S&P of 500 and the NASDAQ of under the ticker symbol on the NASDAQ: ATVI. On the 8th July 2008, the company announced that the stockholders had decided to merge, then the deal closed on the following day for an approximate transaction of US$18.9 billion. One of its major shareholders, Vivendi had the company stake of 52%. On the 2nd of November 2015, Activision Blizzard announced that it had reached the conclusion of acquiring one social gaming company King, the creator of the famous game Candy Crush Saga, for a cost of $5.9 billion. On the 25th July 2013, Activision Blizzard proclaimed to be purchasing shares worth 429 million from its principal owners Vivendi.

On the 28th 2014, Vivendi sold nearly 41 million shares, which is approximated to be 50% of the current company holdings which is registered public holding. Additionally, Vivendi received profits of about $850 million from the sale, but the company did not get any profit. Currently, Vivendi owns almost 41 million of the firm share stock.

On the 31st December 2014, the Blizzard had a share $722 million of the common stock that was being issued and outstanding. During that period, Vivendi had shares of 41 million, which is approximate 6% of the due shares of the company's common stock. Whereas, ASAC held 172 million shares, which reflects 24% of the unusual shares of the common stock. Finally, other stakeholders had nearly 70% of outstanding shares of the company's common stock.

The year 2015 was a stellar one for the Activision Blizzard investors. The shares of this major digital entertainment company doubled, going higher up to 90%. Steadily factoring in Januarys jaded performance, Blizzard stock is up more above 60% in 12 months ago, only outdoing the broad market.

Blizzard Entertainment Stock

In the international market, Blizzard considered to be one of the performing companies in the stock market, when compared to its competitors that manufacture the same products. This evaluation is regarding the market capitalization and stock price. The figure below explains how Blizzard has been performing in the markets. The stock price for Blizzard Entertainment has been performing well since 2011, (as seen in the graph below), this is to say that, the company is viable for investment since its future prosperity regarding the stock market is excellent.

According to the New York Stock Exchange, the Shares of Activision Blizzard (ATVI) are rising at 0.67% to $38.58, and this is on Thursday evening following the companys stock value target raised from $38 to $42 at Barclays.

The company built the 2016 income in earnings per shares from $1.90 to $2 after the company renounced that Overwatch, it's new first-person shooter game to be having 10 million players.

Blizzard Entertainment, Investment Viability

In the short-run, overwatch could include around 4 cents for every share to 2016 profit projections for every 1 million units the organization offers over the underlying assessment of 5 million units, as indicated by Credit Suisse analysts. BMO Capital Markets experts raised their 2016 profit estimates from $1.80 to $1.85 per share in light of the robust gathering of Overwatch and management's uplifting viewpoint for War of Warcraft.

The Activision Blizzard's administration was hopeful about the execution of the Warcraft film in developing markets, which could create a higher interest in the computer game's in the next extension pack during this fall, BMO experts included a different note.

Independently, Activision Blizzard has a "purchase" rating and a letter level of A- concerning The Street Ratings given the organization's income development, strong stock value execution, extending net revenues, significant income from operations and strong monetary position with reasonable obligation levels by general measures.

The Street Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. The Street Ratings dispassionately appraised this stock as per its "risk-adjusted" aggregate return prospect of over 12-month income development skyline.

Conclusively, the financial analysis in this paper has indicated that the company is viable for investment due to its attracting performance in the stock market and the positive prediction by financial analysts. The company growth will be increasing in the coming years hence, increasing the income.

Work Cited

"Activision, Inc. - Annual Report". Investor.Activision.Com, 2016, http://investor.activision.com/secfiling.cfm?filingid=1047469-15-1298&cik=.

"Activision | Blizzard: Stock History." Investor.Activision.Com, 2016, http://investor.activision.com/stocklookup.cfm.

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