Activision Blizzard Stock Swings to All-Time High After Announcing $6 Billion King Deal

UPDATED: Activision Blizzard’s stock price fell as much as 6% Tuesday in early trading before bouncing back and reaching all-time highs, as investors digested the mammoth size of its proposed acquisition of mobile-gaming leader King Digital Entertainment.

Activision Blizzard, whose core business revolves around console and PC titles, said late Monday that it had agreed to acquire King in a deal valued at $5.9 billion. Activision will use approximately $3.6 billion of offshore cash on its balance sheet to fund the deal, along with $2.3 billion in debt financing under existing credit agreements.

Also Monday, Activision posted better-than-expected financial results for the third quarter of 2015, and raised expectations for full-year 2015 revenue and earnings.

The companies touted the combo as bringing together Activision’s strong base of action and role-playing titles, such as “Call of Duty” and “World of Warcraft,” together with King’s top-grossing mobile games such as “Candy Crush” and nearly 500 million monthly active users.

Investors pushed Activision Blizzard shares down in early trading to as low as $32.39 per share, down 6.3% from Monday’s $34.57 closing price. Around 10:15 a.m. ET, shares had rebounded into positive territory, and by mid-day climbed as high as $37.80 per share (up 9.3%) — an all-time high for the company. [UPDATE: Shares closed Tuesday at $35.82, a record high and up 3.6% for the day.]

On Monday, Moody’s Investors Service upgraded Activision Blizzard’s debt rating to investment-grade, citing the company’s strong position in gaming and saying its long-term outlook is stable with the planned King acquisition.

More Digital

  • FandangoNow - Amazon Fire TV

    Fandango's Video Streaming Service Lands on Amazon Fire TV

    FandangoNow, the on-demand transactional movie and TV service from NBCUniversal-owned Fandango, is now available on Amazon Fire TV devices and Fire TV Edition Smart TVs. The expansion to Amazon’s TV hardware platform comes as Fandango vies to get a bigger slice of the digital-entertainment pie — competing with Amazon Video, as well as Apple, Google [...]

  • The Spanish Princess Starz

    Starz CEO Jeffrey Hirsch Lifts Lid on Local Originals Drive for SVOD Starzplay

    Starz CEO Jeffrey Hirsch has outlined the local originals strategy for Starzplay, revealing that a slate of shows are being planned out of the Middle East and India as the business looks to complement its U.S. and English-language pipeline of content. Speaking at the Berlinale Series Market and Conference on Wednesday, the executive told Variety that the [...]

  • Netflix-logo-N-icon

    Netflix Adds Deals With Six Anime Creators in Japan

    Global streaming giant, Netflix is partnering with six different Japanese creators in order to expand its slate of originals anime content. Among the deals are ones with Clamp, the female manga collective that was responsible for the “Cardcaptor Sakura” franchise. Another is with Mari Yamazaki, whose “Thermae Romae” manga was turned into two hit live-action [...]

  • Netflix Corporate Headquarters in Los Gatos

    Netflix Looks to Dispel Myths in Berlin as it Ramps Up European Production

    Netflix is looking to create more transparency and dispel some of the myths around working with the streaming giant as it ramps up its European operations, though the company’s fast-paced shooting schedules are “not for everyone,” director of international originals Rachel Eggebeen said Tuesday morning at the Berlinale Series Market. “It’s a fast pace that [...]

  • Baby Yoda featured image

    Questions Remain for Disney Plus, Hulu Amid Iger-Chapek CEO Transition

    In a surprise announcement, Bob Iger said he was stepping down as Disney’s chief exec citing “the successful launch of Disney’s direct-to-consumer businesses” as one reason for the timing as he hands off to new CEO Bob Chapek. True, Disney earlier this month reported tremendous growth for Disney Plus, racking up 28.6 million users just [...]

More From Our Brands

Access exclusive content