Valuation and Financial Statement Analysis for Activision-Blizzard, Inc.

Wittmann, Stephen (2014) Valuation and Financial Statement Analysis for Activision-Blizzard, Inc. Undergraduate thesis, under the direction of Dr. Victoria Dickinson from Accountancy, The University of Mississippi.


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Activision-Blizzard (ATVI), a market-leading publisher and developer in the videogame industry, represents a fascinating case study of a player in a relatively new industry as it struggles to find a permanent place among entrenched entertainment staples such as music, television, and movies. The company in its present form is the product of a 2008 merger between Activision Inc. and Vivendi Games, thus creating a massive publisher with rights to several of the industry’s most popular franchises, including World of Warcraft, StarCraft, and Call of Duty. This industry domination has not gone unnoticed, and as of March 2013, ATVI’s share price has seen a 41 percent leap following strong earnings releases this year. Furthermore, Vivendi Universal, the French parent company, has shown an interest in selling ATVI as the conglomerate moves to divest several of its subsidiaries. This paper determined that ATVI was a suitable and attractive candidate for an acquisition due to its large cash pile ($4 billion) and valuable intellectual property. In July, 2013 the company was the target of a buyout led by several prominent executives and investors with the objective of moving the dynamic, growing organization away from the stagnating French conglomerate, Vivendi. This action lent credence to the early opinions reached in this paper following a detailed financial statement and valuation analysis, and should be the beginning of an exciting new chapter for ATVI and its stakeholders.

Item Type: Thesis (Undergraduate)
Creators: Wittmann, Stephen
Student's Degree Program(s): B.Accy. in Accounting
Thesis Advisor: Dr. Victoria Dickinson
Thesis Advisor's Department: Accountancy
Institution: The University of Mississippi
Subjects: H Social Sciences > HG Finance
Depositing User: Stephen Wittmann
Date Deposited: 08 May 2014 19:45
Last Modified: 08 May 2014 19:45

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