Nov. 3, 2015, 9:50 AM
- Activision Blizzard (NASDAQ:ATVI) is off 2.8% in the wake of last night's surprise announcement that it was buying Candy Crush Saga regents King Digital (KING +14.1%) for $5.9B.
- Cowen's Doug Creutz reiterated his Outperform rating on Activision, calling the deal "an absolute steal for Activision" that "immediately vaults them to being one of the top mobile gaming companies in the world." He has a $35 price target on the stock; just over 4% upside from today's trading of $33.60.
- Meanwhile, Jim Cramer says "If [Activision chief Bobby Kotick] says this is a good deal, it's a good deal."
- With the deal, King may have "solved" its dilemma of how to keep converting players into payers, as the company never quite got beyond the dependence on a single franchise (however lucrative).
- King's mobile and social game rivals are trading up on the acquisition news as well; Glu Mobile (NASDAQ:GLUU) is up 5.2% in early going, while Zynga (NASDAQ:ZNGA) is up 2.5%. Majesco Entertainment (NASDAQ:COOL) is up 6.3%.
Majesco Entertainment Co. engages in the development, publishing and distribution of video game products primarily for the casual-game consumer. It publishes video games for major current generation interactive entertainment hardware platforms, including Nintendo's DS, DSi, 3DS, Wii and WiiU,... More
Industry: Multimedia & Graphics Software
Country: United States