Activision Blizzard (ATVI) is one of the world's largest videogame companies. Its IP is among the most well-known and successful videogames ever created and include such hits as Call of Duty, Skylanders, World of Warcraft, Hearthstone, StarCraft, and Candy Crush Saga. Despite achieving record revenues in 2018, the company's stock has lost nearly half its value from its highs. What exactly is going on? My belief is that much of the decline has to do with the continuous bad press the company has been receiving in the gaming community and perceived management issues. In particular, the perceived "strained" relationship between Activision and Blizzard.

The Blizzard Issue - A brief history

A little bit of history is needed here to understand the context. The company primarily operates as three segments, each focused on a specific gaming niche. These segments are Activision (focusing on the mainstream market with its annual release schedule), Blizzard (more geared toward "hardcore gamers"), and King Digital (focused on mobile). Blizzard and King Digital were acquired by Activision in 2006 and 2018 respectively.

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