Activision Blizzard's Financials Look Good Post Vivendi Buyout

Activision Blizzard's Financials Look Good Post Vivendi Buyout

World of Warcraft still has 7.7 million subscribers, despite falling numbers.

"We expect to emerge from these transactions even stronger than we are today," says Activision Blizzard's Bobby Kotick on the post-Vivendi era, "an independent company." One with a fairly prosperous balance sheet, it'd seem; its second quarter results show net revenues of $1.05 billion, a slight drop on the previous year's $1.08 billion. Hardly surprising, since last year saw the launch of Diablo III, and nothing comparable came out this year. Solid performers include Call of Duty, which contributed significantly to the digital download section of Activision's financials; digital sales now represent 37% of the company's total revenue. But Kotick's still a little leery about the future, as the changing console generation - which will increase short-term risk for Activision's products - and increased competition make him a little concerned about profits in the second half of the year.

Even with the Vivendi buyout, CFO Dennis Durkin says, Activision Blizzard has $3 billion in its war chest. For those wondering what the post-Vivendi era looks like, "approximately 63% of our outstanding shares will be owned by public shareholders, 24.9% will be held by an investor group led by Bobby and Brian and 12% will be held by Vivendi," according to Durkin. World of Warcraft, still the premier subscription MMO, now stands at 7.7 million players, but Activision's hoping the next content update, Siege of Orgrimmar, will lure back some of the wanderers, or at least keep the current bunch occupied.

Wondering about Titan? So are we all, but not much was said to investors. "We're in the process of selecting a new direction for the project and re-envisioning what we want the game to be," says CEO Michael Morhaime, and while he was careful to say it probably won't be a subscription MMO, he wasn't in a hurry to say what it will be. "We've gone through this type of iterative development process several times in the past on the way to creating genre-defining games," says Morhaime. But the big point, from Activision Blizzard's perspective, is that it isn't relying on just one title any more. It has plenty of money makers now, and it's happy with its prospects for the future.

Source: Activision Blizzard


I just remembered today is also the day I'm supposed to be hanging with a few mates for the weekend and my WoW time just ran out.

Time to get to get me some more WoW time if I'm to get into those raids.

Also good on Blizz for keeping safe.

This is really uplifting to see. I wonder how they're going to turn out going forward. Or if they will change at all.

Sounds positive and more open minded to creating new IPs that say Ubisoft.

Well... not by that much but at least they know how to spin it better :) Looking forward to seige and hoping whatever the 'new' game titanthingy is I hope its cool, original and fresh like wow, warcraft(the original rts), starcraft and diablo were when i first came to play them.

Who knows, maybe this'll mark a new era of Activision-Blizzard where they aren't just money grubbers and actually care about their fans again.

I'm glad to see the company came out okay. They do make fun games even if they do get repetitive over a while. The Blizzard side needs to work on something different to keep people interested in them, though, and the Activision side needs something new as well, since they've been endlessly rehashing Call of Duty Modern Warfare for over half a decade.

Glad everything is working out. Some customers will probably come back during the next patch, it is an exciting one after all.

And of course there is a new expansion eventually, new things always pull back the customers. WoW will probably keep juggling between up and down time between expansions for a long while still.

Who knows, maybe this'll mark a new era of Activision-Blizzard where they aren't just money grubbers and actually care about their fans again.

Don't count on it. They've still got Bobby "Satan" Kotick at the steering wheel.


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