![]() ![]() MSFT, meanwhile, looks to have made a bold strategic acquisition in a massive and fast-growing industry.Īnd as for investors in other video game studios? Does the MSFT-ATVI marriage make those assets more valuable?ĭan Burrows is Kiplinger's senior investing writer, having joined the august publication full time in 2016.Ī long-time financial journalist, Dan is a veteran of SmartMoney, MarketWatch, CBS MoneyWatch, InvestorPlace and DailyFinance. It appears investors in ATVI can put the drama surrounding the C-Suite and the stock behind them. "The migration will take a lot of time, however," he cautions. That's the strategic rationale behind Microsoft’s deal for Activision, Barish surmises. "Eventually we expect video games to become a cloud-based product (as compared to console based), and more content to throw at the customer should expedite this process," Barish adds. ![]() "The conclusion at the time of purchase was there was some component of 'inevitability' that the management suite drama would conclude in some constructive fashion, along with scarcity value for a major video game studio," Barish says.Īnd make no mistake: That scarcity value is key at a time when major cloud companies such as ( AMZN), Google parent Alphabet ( GOOGL) and Microsoft all have designs on the space. ![]() The video game publisher accounts for 2% to 2.5% of the funds that own it namely, Cambiar Opportunity Fund ( CAMOX) and Cambiar Aggressive Value Fund ( CAMAX).īarish saw value in a stock beaten down by scandal, negative press and difficult year-over-year comparisons - especially one that was trading at just around 13 times free cash flow. Indeed, gaming's future as a cloud-based product was one of the reasons behind Cambiar Investors' interest in Activision Blizzard, says Chief Investment Officer Brian Barish.Ĭambiar, a Denver-based active value manager with $8.1 billion in assets under management, initiated stakes in ATVI in the fourth quarter. The company's 1986 initial public offering and subsequent rise in its share price created three billionaires and an estimated 12,000 millionaires among Microsoft employees.Not only does the deal create the world's third-largest video game company, but - perhaps more importantly - it gives MSFT another way to leverage its behemoth of a cloud-based services business. It rose to dominate the personal computer operating system market with MS-DOS in the mid-1980s, followed by Windows. ![]() Microsoft was founded by Bill Gates and Paul Allen on April 4, 1975, to develop and sell BASIC interpreters for the Altair 8800. It is often considered as one of the Big Five American information technology companies, alongside Alphabet, Amazon, Apple, and Meta Platforms. 14 in the 2022 Fortune 500 rankings of the largest United States corporations by total revenue it was the world's largest software maker by revenue as of 2022. Its flagship hardware products are the Xbox video game consoles and the Microsoft Surface lineup of touchscreen personal computers. Microsoft's best-known software products are the Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers. Microsoft Corporation is an American multinational technology corporation headquartered in Redmond, Washington. ![]()
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