Activision Blizzard, Inc. (ATVI) stock dropped after the company reported a 22% reduction in sales, which was worse than market experts had predicted. Experts warn that concluding Microsoft’s deal with Activision has hazards. The corporation just released a report for the first quarter of 2022, which revealed that the results were worse than Wall Street experts had projected.
Earnings declined 24% year over year to $0.64 per share, falling short of the $0.71 average research cost. The gaming company’s overall revenue dropped 22% to $1.77 billion, falling short of market expectations of $1.82 billion. In the same period last year, sales were $2.28 billion.
Weak sales of last year’s Call of Duty game were the cause of ATVI’s bad financial results. According to the firm, the November launch of Call of Duty Vanguard did not go as planned.
The largest video gaming firm in the United States, Activision Blizzard, also owns popular franchises including Warcraft and Candy Crush. The firm stated that delays in Warcraft’s production schedule countered excellent profits from Candy Crush and the King division, which it said offset the company’s negative earnings.
The new mobile game Diablo Immortal will be released on June 2nd, according to Activision Blizzard, Inc. (ATVI). This game, which was developed in collaboration with NetEase Inc. in China, is predicted to be the most popular in the country. More than 30 million individuals have pre-ordered the game, according to Activision.
On April 28, ATVI will conduct a shareholder meeting to vote on Microsoft’s $68.7 billion acquisition. The purchase was announced in January and, assuming regulatory approval, will most likely not finalize until next year. SOC Investment Group, a tiny but active group of shareholders, asked shareholders to vote against the acquisition and Microsoft’s $95 per share offer earlier this month.
However, both firms’ boards of directors have already accepted the merger, which is slated to finalize by the end of June 2023. According to merger betting (merger arbitrage) in January, the transaction has a 60 percent probability of going through.