Activision: Well-Positioned To Capture Opportunities From Gaming Industry Shifts

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About: Activision Blizzard, Inc. (ATVI)
by: UCLA Bruin Value Investing
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UCLA Bruin Value Investing
Long only, medium-term horizon
Summary

ATVI is shifting to a more profitable business model focusing on subscription, microtransaction, and advertisements. Expecting growth of 17.5% per annum and improving profit margin.

Rapid development of video gaming, eSports, and mobile initiatives will positively impact shares in the long term.

Gaming industry is currently in its growth phase and the industry tailwinds will benefit ATVI as one of the top performers in the industry.

ATVI's existing and new IP in plan serve as strong business moat.

The Business

Activision Blizzard (ATVI) is an American interactive entertainment content and services developer and publisher. It distributes content across 3 main platforms, which are video game consoles, PC, and mobile devices. The