Activision and Bungie made a big announcement on Thursday when the companies confirmed they were dividing, with Bungie leading the Destiny series. While Destiny 2: Forsaken may have failed to reach Activision's commercial expectations, it still means that the publisher is losing revenue.
So it is not surprising that the price of Activision Blizzard's shares has fallen dramatically after the news has been made public. Investors were apparently frightened by the idea that Activision Blizzard would lose a revenue contributor.
The company's share price fell nearly 7 percent in today's after-hours trading on the New York Stock Exchange. The news was published after the stock market closed, so it will be interesting to see the share price tomorrow when the market opens. [ Update: With the markets now open, the decline has only continued; after closing Thursday at $ 51
In 2015, the price of Activision Blizzard's shares reached a new all-time high, and it grew even more, before declining in the last year. In March 2018, an analyst downgraded Activision Blizzard's stock rating, stating that the company was facing a "combination of concerns" that could affect its share price.
In a filing of the Securities & Exchange Commission, Activision Blizzard said it does not expect to lose Destiny to make a significant impact on revenue or operating income in 2019. However, the loss of a big franchise like Destiny will surely have an impact on the Activision Blizzard bottom line in a certain capacity. Activision Blizzard makes the next earnings report on February 12th, and we'll probably learn more at the time.
Lately it has been a period of change for Activision Blizzard. In addition to losing Destiny, Activision Blizzard CFO Spencer Neumann recently quit Netflix, while CFO Blizzard Amrita Ahuja has left the company to take a new job in Square (the mobile payment company, not Square Enix).
great news on Destiny, check out the related stories below.