In newly-published Bloomberg’s article, it was revealed that Gerber Kawasaki’s Investment Advisor Representative, Nick Licouris, aspires for The Walt Disney Company (NYSE:DIS) to expand its business by acquiring Activision Blizzard, Inc. (NASDAQ:ATVI). Gerber Kawasaki is an independent asset management firm with more than $859 million in assets under management. The fund held $4.12 million worth of stake in Activision Blizard, on the account of 90,490 shares, at the end of Q1 2019, whereas in The Walt Disney it reported a position that counted 152,587 shares outstanding with a value of $16.95 million.
Over the last 12 months, Activision Bizzard’s stock lost 37.84%, closing on June 2nd with a price of $47.98 per share, which lead many investors into thinking the company is a good opportunity for a takeover at the moment. During the same time, Disney’s stock gained 36.03%, having a closing price of $142.53 on June 2nd.
According to the above-mentioned article, Nick Licouris believes Disney’s acquisition of Activision Blizzard could be a fantastic opportunity for Disney to expand its content by adding Activision Blizzard’s flourishing e-sports business to its portfolio. With the gaming industry booming lately, and Activision Blizzard’s stock price declining, Nick Licouris finds now to be the right timing for a takeover.
This would definitely be a big investment for Disney, because in spite of declining Activision Blizzard’s stock price, the company has a market cap of $37.61 billion.
This article is originally published at Insider Monkey.