With Vivendi out of the picture, Activision Blizzard will likely have more room to invest without extraneous oversight. In addition to its newfound freedom, the company also now has a newly cemented friendship with Tencent. The Chinese Internet-based business has worked with EA, Activision, and others in the past, announcing a new deal with EA’s FIFA Online earlier this week. Tencent does not have an Activision Blizzard board seat or the right to nominate board members, according to Kotick.
Even if Warcraft continues to suffer, Activision Blizzard’s other titles should keep pulling new gamers in. The console launch of Diablo III at the end of the year, along with Call of Duty: Ghosts in November, and Bungie’s Destiny in 2014 should all provide good sales boosts.
The bottom line
The main point for investors is that Activision Blizzard now has more freedom to use its cash as it sees fit. For gamers, that could mean any number of things. Vivendi’s involvement was seen as meddling by many, but the details of the internal oversight and influence are all rumor. For now, it’s enough to know that Activision Blizzard is back in control of its own destiny, and now it might have enough cash to shape that destiny into a success.
The article Activision Blizzard Buys Stake Back From Vivendi as Subscriber Numbers Fall originally appeared on Fool.com.
Fool contributor Andrew Marder has no position in any stocks mentioned. The Motley Fool recommends Activision Blizzard. The Motley Fool owns shares of Activision Blizzard.
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