Activision Blizzard (ATVI) Stock Slumps on New Film, TV Studio

Activision Blizzard (ATVI) stock is falling in late afternoon trading on Friday, as it launches its new film and TV studio "Activision Blizzard Studios."
By Rachel Graf ,

NEW YORK (TheStreet) -- Activision Blizzard (ATVI) - Get Report stock is lower by 6.40% to $34.97 in late afternoon trading on Friday, as the video game publisher launches a studio to recreate its popular video games as original film and TV content.

Nick van Dyk, a former senior strategist at Disney (DIS), will be the co-president of Activision Blizzard Studios. The other co-president has not yet been named. 

The studio plans to create a movie and potentially a TV franchise based on its popular "Call of Duty" video games, but will first produce an animated TV series based on its "Skylanders" video game. 

Hollywood studios have vied for Activision's intellectual property for years, but the company has withstood any interest, the Wall Street Journal reports. 

"Activision Blizzard is home to some of the most successful entertainment franchises in history, across any medium. With the launch of Activision Blizzard Studios, our engaged fans can now watch the games they love come to life across film and television," CEO Bobby Kotick said in a statement.

Additionally, Activision agreed to acquire "Candy Crush Saga" maker King Digital Entertainment (KING) in a deal worth $5.9 billion on Tuesday. The company reported 2015 third quarter earnings of 21 cents per share on revenue of $1.04 billion on Monday. Analysts had forecast for earnings of 15 cents per share on revenue of $952 million. 

Separately, TheStreet Ratings team rates ACTIVISION BLIZZARD INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

We rate ACTIVISION BLIZZARD INC (ATVI) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

You can view the full analysis from the report here: ATVI

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