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About Activision Blizzard, Inc.

Activision Blizzard answers the Call of Duty to make video games that millions of users play for billions of hours. The company is the biggest producer of video games including some of the most durable franchises: World of Warcraft, Overwatch, Candy Crush, and Call of Duty. Users play Activision Blizzard's games on PCs, game consoles, and mobile devices. Activision Blizzard is also operate esports league and offer digital advertising within their content. The company generates over half of its revenue in the Americas.

Operations

Activision Blizzard operates in three segments: Activision, Blizzard, and King.

Activision, which accounts for about 35% of revenue, delivers content through retail, and digital channels, including full-game and in-game sales, as well as by licensing software to third-party companies that distribute Activision products. Activision also includes the activities of the Call of Duty League, a global professional esports league. The segment has about 128 million monthly active users (MAU).

Blizzard, more than 25% of revenue, delivers content through retail and digital channels, including subscriptions, full-game, and in-game sales, as well as by licensing software to third-party or related-party companies that distribute Blizzard products. Blizzard also maintains a proprietary online gaming service, Blizzard Battle.net, which facilitates digital distribution of Blizzard content and selected Activision content, online social connectivity, and the creation of user-generated content. Blizzard also includes the activities of the Overwatch League, the first major global professional esports league with city-based teams. Blizzard has about 32 million MAUs.

King, about 30% of revenue, develops and publish interactive entertainment content and services, particularly for the mobile platform, including their Google's Android and Apple's iOS. King also distributes its content and services on the PC platform, primarily via Facebook. King counts some 249 million MAUs.

Geographic Reach

Santa Monica, California-based Activision Blizzard depends on the Americas for around half its revenue. It gets more than a third from Europe and about 15% from the Asia/Pacific region. The company has about 80 facilities in some 20 countries around the world.

Sales and Marketing

Activision Blizzard markets its games on multiple platforms including social media such as Facebook, Twitter, and YouTube, online advertising, print and broadcast advertising, direct response, and product sampling. The company delivers content through retail channels or digital downloads, including subscriptions, full-game sales, and in-game purchases, as well as licenses of software to third-party or related-party companies that distribute Blizzard products.

The company's major customers are Apple, more than 15% if revenue, Sony, about 15%, and Google, about 10%.

The company's advertising expenses for 2019, 2018, and 2017 were $587 million, $631 million, and $708 million.

Financial Performance

Revenues decreased by 13% to $6.5 billion due decrease on their digital online channels decreased by 15% to $4.9 billion in 2019. In 2019, lower revenues recognized from the Destiny franchise and Call of Duty titles.

Activision Blizzard's profit decreased to $1.5 billion, as compared to $1.8 billion in 2018, which included significant discrete tax-related impact in both 2019 and 2018.

The company's coffers held $5.8 billion in cash and equivalents in 2019 compared to $4.2 billion the year before. In 2019, cash flow from operations was $1.8 billion, while investing and financing activities used $22 million and $237 million, respectively.

Strategy

The company's objective is to continue to be a worldwide leader in the development, publishing, and distribution of high-quality interactive entertainment content and services, as well as related media, that deliver engaging entertainment experiences on a year-round basis. In pursuit of this objective, they focus on three strategic pillars: expanding audience reach; driving deep consumer engagement; and providing more opportunities for player investment.

Building on their strong established franchises and creating new franchises through compelling new content is at the core of their business. They endeavor to reach as many as consumers as possible either through: the purchases of their content and services; engagement in their free-to-play games, which allow consumers to play games with no upfront cost but provide for player investment through sales of downloadable content or via microtransactions; or engagement in other types of media based on their franchises, such as esports.

Their high-quality entertainment content not only expands their audience reach, but it also drives deep engagement with their franchises.

Activision Blizzard, Inc.

3100 Ocean Park Blvd
Santa Monica, CA 90405-3032
Phone: 1 (310) 255-2000

Firm Stats

Employer Type: Publicly Owned
Stock Symbol: ATVI
Stock Exchange: , NASDAQ
Chairman: Brian G. Kelly
CEO: Robert A. Kotick
Vice Chairman: Thomas Tippl
Employees (This Location): 333
Employees (All Locations): 9,200

Major Office Locations

Santa Monica, CA

Other Locations

Foster City, CA
Fresno, CA
Irvine, CA
Los Angeles, CA
Novato, CA
Redwood City, CA
Santa Monica, CA
Red Bank, NJ
New York, NY
Columbus, OH
Dallas, TX
Mississauga, Canada