1. ATVI: Activision Blizzard
Presented By David Itoafa

2. Catalysts Short- term- Q4 Earnings Call 2 February 2016
Mid-term- Expansion of Mobile Gaming Market
Long-Term Increased Popularity of E-Sport and virtual reality possibility in future

3. Thesis
Expansion Offering more protection from many risks explained in 10-k (have diminished)
Mobile Gaming Market continues to grow and Activision is best Positioned to take advantage in the future.
Virtual Reality / Augmented Reality potential in future.

4. Key Statistics Market Price: $35.69 Price Target: $45.00
Market Cap: $27.66 Billion
52- Week Range:
Beta: 1.01

5. Company Description Founded in 1979
Headquarters in Santa Monica California
Acquired King Digital Entertainment Earlier This Year 6.9 Billion
Online Games through retail and digital online channels
Three Segments: Blizzard Entertainment – Activision – Media

6. Business Model Three Pillars: 1. Acquire New Customers
2. Deepening Engagement
3. Increase In Game Investments. ( The Goal)

7. 1. Acquiring New Customers

8. 2. Deepening Engagement

9. 3. Player Investment In Game

10. Emerging Markets E-Sports - Male Millennials in America Watching
Electronic Sports Surpasses Ice Hockey on par with Baseball
Millennials keep habits of what they watch in future huge
Potential growth.
Mobile Gaming- Gaming Market That will develop
The most in the future

11. In Game Advertising With The Recent Acquisition ATVI has
Started advertising Blizzard and Activision games
To the 400M MAU’s. Free Advertising that certain
Analysts Predict $500 million dollar potential profit in future- It is already working.

12. Facebook Just Gave Them Access to 1 Billion more Players
Messenger Games has just been released- ATVI one of very few companies allowed in the beta
“When games on the desktop were at their peak, Facebook game publishers earned just shy of a billion dollars in revenue for the year.”
Larger Revenue Pool difficult to project total revenue earned.
Huge Potential Catalyst In Future
King's game portfolio can be made readily made accessible to Messenger's one billion users, and can now feature a more social aspect to its games.

13. CEO New Pay Deal
Bobby Kotick Has been at the helm of Activision for the past 25 years.
Lowered from $2.4 Billion to $1.8 Billion.
Stands to make 56.3 million shares if all objectives are met.
He Believes In the company and it’s goals and the future of the company is certain now that he will be in control

14. Margins
Activision EA

15. Stability / Debt

16. Valuation
Market is somewhat worried with the substantial Amount Of Debt-
6.3 Billion- All long term debt.
Revenue Growth In Future and all catalysts for future beat out
competition
Cost for them to Refinance is cheaper compared to competitors

17. Call Of Duty is Dying …..
Overwatch – Last Earning’s Call: “Overwatch became Blizzard's fastest game ever to reach 20 million players”
Destiny 2 – Look’s promising, but not reliant on this game
Call Of Duty Remastered- Recently released also could
Movies / TV- Shows- Warcraft Movie $422 million in box office.
New Expansion of WOW Matches previous records set ( has been rolling for 15 years now re- energized certain consumers)

18. Conclusion
Long Term Looks Very Promising because analysts and market are underestimating certain aspects of the business. Esports and Mobile Market Will Be Huge In Future and Activision has a unique position compared to all of its competitors. Entry Point: $35-$37 Price Target: $45