It Was Bound to Happen
As companies merge and split and change, their reputation and influence changes as well. People are by nature untrusting of change. Therefore, when a company experiences any sort of loss, the stock in that company takes a sudden dive.
Stock Prices Fell Hard
As of this morning, stocks for Activision Blizzard dropped 11.76%. Since then it has bounced back some to only a 9.37% drop. It has had a slow and steady recovery so far, only hitting that low once.
This sudden drop in stock value is likely only just the immediate panic of a company change. It probably will not last, but we can’t be for sure.
Activision still has plenty of worthwhile titles with Blizzard, including Overwatch and Call of Duty. However, losing Destiny is not something that can be forgotten for Activision Blizzard. They’ll likely be looking out for the next big thing to get their hands on to replace Destiny.
Change is in the Air
Activision’s influence on Blizzard has been growing. Many positions have changed hands in the company since, such as co-founder of Blizzard Mike Morhaime leaving, as well as Chief Financial Officer Spencer Neumann.
Bungie is just the latest in many severed ties with Activision Blizzard. Will there be more? Time will tell.
What direction is Activision Blizzard heading? Is all this change for better or worse? Will you try and buy up some stock while it’s low? Let us know what you think in the comments below.