The earnings season is on its way, and has been outstanding for most of our picks! Today, is a rewarding day for our patient members who hung on to their positions on Activision Blizzard alongside me! The stock has literally been stuck between $10 and $12 for a long long time. But our belief in the fundamentals of the company and patient approach finally started paying off, with our total return of this investment hitting the 65% mark, after surging nearly 17% today! Congratulations! Vivendi and Activision announced an agreement to resolve the issue of Vivendi’s majority shareholder position. Activision will issue $4.6 billion in debt and add in about $1.2 billion from cash to buy 429 million shares of itself from Vivendi. This will reduce Vivendi's position to around 12%, from a much larger 60%. The share was likely being pinned down due to these control concerns, which got alleviated by this news!
With ATVI still producing top games and minting cash, we are happy to continue holding our position.
Stay tuned for our next recommendation coming soon!