2. Activision Blizzard, Inc. (NASDAQ:ATVI)
Third Point’s Stake Value: $154,780,000
Percentage of Third Point’s 13F Portfolio: 0.84%
Number of Hedge Fund Holders: 80
Activision Blizzard, Inc. (NASDAQ:ATVI) delivers interactive entertainment and advertising content to customers in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Billionaire Dan Loeb acquired a stake in Activision Blizzard, Inc. (NASDAQ:ATVI) in Q3 2021, buying 2 million shares worth $154.78 million, representing 0.84% of his 13F securities for the period.
On February 4, 2021, Activision Blizzard, Inc. (NASDAQ:ATVI) declared a $0.47 per share annual dividend, a 14.6% increase from its prior dividend of $0.41, which was paid on May 6.
On January 18, Microsoft Corporation (NASDAQ:MSFT) announced that it is buying Activision Blizzard, Inc. (NASDAQ:ATVI) in its largest acquisition to date, for $68.7 billion. This will mark Microsoft Corporation (NASDAQ:MSFT)’s entry into the videogame market. The deal values Activision Blizzard, Inc. (NASDAQ:ATVI) at $95 a share and is expected to close in FY2023.
KeyBanc analyst Tyler Parker lowered the price target on Activision Blizzard, Inc. (NASDAQ:ATVI) on January 28 to $95 from $100 and kept an Overweight rating on the shares. Though the market is pricing in a fair amount of regulatory concern with the Microsoft Corporation (NASDAQ:MSFT) deal, the analyst believes it will go through successfully.
In the third quarter of 2021, 80 hedge funds tracked by Insider Monkey were long Activision Blizzard, Inc. (NASDAQ:ATVI), with stakes totaling $4.28 billion, as compared to 78 funds in the prior quarter, holding stakes worth $3.65 billion in Activision Blizzard, Inc. (NASDAQ:ATVI).
D E Shaw, the largest Activision Blizzard, Inc. (NASDAQ:ATVI) stakeholder, increased its position in the company by 1084% in Q3 2021, holding 9.8 million shares worth $765.25 million.
Here is what Cooper Investors has to say about Activision Blizzard, Inc. (NASDAQ:ATVI) in its Q4 2021 investor letter:
“In our previous letter we discussed the Responsible Investing aspects around the workplace issues disclosed earlier in the year at Activision Blizzard. Subsequently, further information emerged including allegations and anecdotes of historic awareness and inaction to the issues within the ranks of executive management. So too the latest earnings announcement saw the Blizzard studio push out several game launches, a very real consequence of workplace issues in a human capital-based business. The remedial efforts required are greater than we originally thought and the position was sold in what has been a disappointing experience.”
