Activision Blizzard Unveils Strong Q4 Data, Beats Forecast

On Monday, Activision Blizzard reported a strong fourth quarter earnings report that surpassed analysts’ forecasts.

Its stock price went down by -4.86% to $71.58 per share on February 06. However, it is anticipated to rebound by 1.22% to $72.45 apiece in the upcoming session.

The earnings per share of the gaming company increased to $1.87, higher than analysts’ forecasts of $1.51. It is better than the previous $0.68 data.

Furthermore, the revenue of Activision Blizzard hiked to $3.57 billion, above the $3.19 billion estimates. These figures jumped from the former $1.78 billion record.

Moreover, its fourth-quarter monthly active users reached 389.00 million, a more significant number than the expected 388.40 million.

The company’s release of high-profile games like Call of Duty: Modern Warfare II made immense contributions, according to analysts. These game release helps Activision Blizzard boost to a substantial beat, especially with their net bookings.

In 2022, Modern Warfare II helped boost their numbers, generating $1.00 billion in sales despite a consumer spending slowdown. Also, a free-to-play version of the game gained popularity, earning 25 million players in its first week.

In addition, Activision Blizzard witnessed a cost increase after agreeing to pay $35.00 million to the Securities and Exchange Commission. The payment was intended for settling processed employee complaints about the workplace.

Microsoft Buyout of Activision Blizzard Rejected

Last year, Microsoft announced a $70.00 billion acquisition deal with Activision Blizzard.

According to analysts, the computer software company expects opposition from the UK’s Competition and Markets Authority. The EU regulators issued their antitrust warnings the past week.

However, Washington-based giant believes it can convince European and British regulators to agree with their adjustments to approve the deal.

Besides, the three most essential regulators still gave a thumbs down despite some countries already agreeing to the merger. The three are the United States, the European Union, and the United Kingdom.

Additionally, Microsoft hopes to finish the buyout of Activision Blizzard by the end of its first fiscal year in June. Analysts believe that this big acquisition looks bad for the company since they recently laid off 10,000 of their workforce.


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