ATVI Revenues: How Does Activision Blizzard Make Money? | Trefis (2024)

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ATVI Revenues: How Does Activision Blizzard Make Money? | Trefis? ›

Activision Blizzard Generates Its Revenue From Sales of Video Games And In-Game Purchases.

The company also reported having $9.236 billion in cash and equivalents. Activision Blizzard made the most of its money from King, its mobile game division.

Activision Blizzard Inc's profitability score is 64/100. The higher the profitability score, the more profitable the company is.

Activision Blizzard revenue for the twelve months ending March 31, 2023 was $8.143B, a 1.84% decline year-over-year. Activision Blizzard annual revenue for 2022 was $7.528B, a 14.48% decline from 2021. Activision Blizzard annual revenue for 2021 was $8.803B, a 8.87% increase from 2020.

Because even though Blizzard games are making about half as much as Activision games, 72% of Blizzard's revenue is coming from PC and only 8% from console. In comparison, Activision's revenue is split more evenly between console, PC, and mobile, with 59%, 26%, and 15% respectively.

Our success comes from the passionate, talented and diverse team of people behind our world-class franchises. Ensuring Activision is an inclusive workplace where everyone can thrive will help us deliver a new era of epic entertainment for our players.Want to join the Activision team?

The company's business is conducted through three major business segments, which include Activision, Blizzard, and King. The Activision segment, which develops and sells video games, is the company's biggest revenue and profit generator.

As of 2023-07-01, the Fair Value of Activision Blizzard Inc (ATVI) is 59.05 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 84.3 USD, the upside of Activision Blizzard Inc is -29.9%.

Total debt on the balance sheet as of March 2023 : $3.61 B

According to Activision Blizzard's latest financial reports the company's total debt is $3.61 B. A company's total debt is the sum of all current and non-current debts.

In 2022, Activision Blizzard plans to use immersive design, gameplay variety, free to play pricing. The goal of the marketing team this year will be to push the product through social media marketing. The company will collaborate with content creators and streamers to hype up its product.

What is the competitive advantage of Activision Blizzard? ›

Competitive Advantage and Analysis:

Well diversified revenue streams creates a defensible moat in the gaming arena as the company has the ability to quickly pivot and invest in a variety of opportunities sets. This is additionally bolstered by a balance sheet tied down with a strong cash position.

Activision is a leading worldwide developer, publisher, and distributor of interactive entertainment for various gaming consoles, handheld platforms, and PC, including blockbuster franchises like Call of Duty®, Crash®, and SpyroTM.

Its shares are owned by a large number of individual and institutional investors. The biggest individual investors are Warren Buffett's conglomerate Berkshire Hathaway and Saudi Arabia's sovereign wealth management fund, the Public Investment Fund (PIF).

Microsoft's games — including Gears of War, Forza, Halo, and Minecraft — are already included. The company would love to add Activision's titles to the platform to boost subscriber numbers.

On January 18, 2022, Microsoft announced its intent to acquire Activision Blizzard for $68.7 billion in an all-cash deal, or approximately $95 per share. Activision Blizzard's stock price jumped nearly 40% that day in pre-market trading.

Activision Blizzard's analyst rating consensus is a Strong Buy. This is based on the ratings of 15 Wall Streets Analysts.

The hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1), and the lowest priority to unobservable inputs (Level 3).

Activision Blizzard has a total shareholder equity of $20.1B and total debt of $3.6B, which brings its debt-to-equity ratio to 18%. Its total assets and total liabilities are $27.4B and $7.3B respectively. Activision Blizzard's EBIT is $2.0B making its interest coverage ratio -10.9.

Is Microsoft overpaying for Activision? ›

Did Microsoft Overpay for Activision Blizzard? Most people think that Microsoft overpaid with the $70 billion price tag on Activision Blizzard. Not necessarily. People tend to look at this as a consolidation deal, where Microsoft buying a company at a decline, which is not.

Microsoft To Pay $3 Billion "Breakup Fee" If Merger Falls Apart, Says Activision. Bobby Kotick confirms that Microsoft will still hand over billions even if the merger is blocked.

Reasons supporting the deal: (1) more recurring revenues, (2) metaverse opportunities and (3) value-creating use of Microsoft's pile of cash.

Blizzard Entertainment has announced that Diablo 4 is its fastest-selling game to date.

2: Content acquisition and marketing costs

Of course, Electronic Arts and Nintendo have large collections of popular, valuable products as well. The difference is in Activision Blizzard's ability to turn those properties into sustainably-profitable games that players enjoy, for a lower cost than competitors.

(Nasdaq: ATVI), a leader in game development and interactive entertainment content publisher. This acquisition will accelerate the growth in Microsoft's gaming business across mobile, PC, console and cloud and will provide building blocks for the metaverse.

Strengths: Activision Blizzard's most significant strength is its diverse portfolio of highly successful franchises, affording the company strong brand recognition and a loyal consumer base.

The defining factor of a blizzard is actually the strength of the wind, rather than the amount of snow. To qualify as a blizzard, the combination of wind and snow must: Severe blizzards can reduce visibility to zero, making it difficult to see buildings or trees just a few yards away.

Blizzards are dangerous winter storms that are a combination of blowing snow and wind resulting in very low visibilities. While heavy snowfalls and severe cold often accompany blizzards, they are not required. Sometimes strong winds pick up snow that has already fallen, creating a ground blizzard.

What are the core competencies of Activision? ›

While Activision's portfolio consists of a variety of games, its core competencies lie in visually stunning, smooth-moving, addictive first-person shooters like Destiny and Call of Duty.

Number of shares outstanding as of July 2023 : 785,000,000

According to Activision Blizzard's latest financial reports and stock price the company's current number of shares outstanding is 785,000,000. At the end of 2023 the company had 785,000,000 shares outstanding.

How much a company is worth is typically represented by its market capitalization, or the current stock price multiplied by the number of shares outstanding. Activision Blizzard net worth as of June 30, 2023 is $66.12B. Activision Blizzard, Inc. is a leading developer and publisher of console, online and mobile games.

On January 18, 2022, Microsoft announced its intent to acquire Activision Blizzard for $68.7 billion in an all-cash deal, or approximately $95 per share. Activision Blizzard's stock price jumped nearly 40% that day in pre-market trading.

Blizzard Entertainment is a premier developer and publisher of entertainment software, and the company is renowned for creating some of the industry's most critically acclaimed games, including World of Warcraft®, Overwatch®, Hearthstone®, StarCraft®, and Diablo®.

European regulators have approved Microsoft's $69 billion acquisition of Activision Blizzard, handing the technology giant a victory at a time when the deal is being challenged in other countries.

EMC. Tech company Dell announced the acquisition of EMC Corporation in October 2016 for a world record (at the time) $67 billion. EMC developed, sold, and stored data management hardware and software to its customers. At the time, Dell had to take on $50 billion in debt to acquire EMC.

The major, obvious feature of this acquisition is that it would give Microsoft control of Call of Duty, one of the biggest games in the world. It would be an enormous blow to Sony if COD were to disappear from PlayStation.

Welcome To Blizzard. At Blizzard Entertainment, we pour our hearts and souls into everything we create.