Activision Blizzard Shares Sank to $40 After Rumors of Massive Cuts
Activision Blizzard shares fell to a two-year low. By yesterday’s close of trading, the value of securities fell by 7.3% to $40.11.
The last time the company’s share price fell below this level was on February 3, 2017. On that day, it dropped to $40.01, writes Gamesindustry.biz .
Waiting for layoffs
Yesterday’s stock collapse is primarily related to information about upcoming cuts in Activision Blizzard. According to Bloomberg, it is preparing to lay off hundreds of people in order to restructure. As noted by Kotaku editor Jason Schrier, the staff of the company itself still does not know who exactly will lose their jobs.
According to a Bloomberg source, Activision Blizzard should announce the cuts today, February 12, as part of the announcement of financial results for the fourth quarter of the year.
Activision’s “Black Stripe”
The decline in the shares of one of the largest gaming companies has been going on since September 2018. Then they cost $83.19. Since then, the price has been steadily and rapidly declining. A number of scandals and just unpleasant events related to Activision Blizzard affected.
So, in November, to the dissatisfaction of many players, the announcement of mobile Diablo: Immortal arrived instead of a full-fledged numbered Diablo for PC and consoles. The shares sank immediately by 6.7%.
Already in the new year, there were reshuffles in the company’s management and a break in relations with Bungie (who left and took IP Destiny with her). The latter led to proceedings against Activision: it was suspected of securities fraud.
Also on the topic:
