Asif Suria

Ride Out the Recession with Activision Blizzard

I agree Boris that this is not just a recession play but could do well as a very long-term investment as well. With a market cap of $23 billion and projected 2009 revenue of $4.5 billion, their P/S ratio works out to 5.11, which in my opinion is not very expensive if the merger with Blizzard improves operating and profit margins.

As I mentioned in the article, revenue could increase significantly if the company created console versions of Blizzard's franchises and/or introduced MMORPG versions of Diablo or Starcraft. It remains to be seen how the new company executes but I wanted a piece of the action while I could get it at a reasonable valuation.