Activision-Blizzard’s Stock Price Plunges Post Bungie Breakup

Last week we talked about the split between Activision and Bungie that saw Bungie keeping Destiny franchise rights. The folks at Bungie were pleased about the breakup and are looking forward to the future. Activision probably doesn’t feel as good about the breakup.

Activision’s stock price has taken a 10% nosedive after the separation reports CCN. The stock price decline shows that investors may fear a decrease in revenue thanks to Destiny publishing rights going to Bungie. The move means that Activision will gain nothing from Destiny franchise games in 2019.

Activision was unhappy with Destiny 2 having stated that the game failed to meet sales expectations. Activision had a tough 2018 losing CFO Spencer Neumann to Netflix in early January. Activision had terminated the contract of Neumann, according to reports that was for some sort of violation of legal obligations to the company.

Activision-Blizzard is also reported to have some friction between workers at the two parent firms. Blizzard is said to be quietly trying to cut costs, and rumors suggest that layoffs might happen in 2019.