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Activision Blizzard’s stock tanked after the publisher announced it would be splitting from Bungie, prompting investors to investigate whether the company “engaged in securities fraud or other unlawful business practices.” Some presume it’s to determine how long Activision Blizzard knew about the split, or whether there was insider trading involved (stock being sold right before the announcement).
“On January 11, 2019, the Company disclosed that it would be separating from its design and development partner Bungie, Inc. (‘Bungie’) and that Bungie will assume full publishing rights and responsibilities for the Destiny franchise. Bungie had developed the Destiny franchise with Activision as publisher. In the first five days of the Destiny franchise’s release, it sold $325M at retail. Following this announcement, Activision’s stock price fell sharply during intraday trading on January 11, 2019.”
“On January 11, 2019, the Company disclosed that it would be separating from its design and development partner Bungie, Inc. (‘Bungie’) and that Bungie will assume full publishing rights and responsibilities for the Destiny franchise. Bungie had developed the Destiny franchise with Activision as publisher. In the first five days of the Destiny franchise’s release, it sold $325M at retail. Following this announcement, Activision’s stock price fell sharply during intraday trading on January 11, 2019.”