ATVI: Activision Blizzard Presented By David Itoafa

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

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.

Key Statistics Market Price: $35.69 Price Target: $45.00 Market Cap: $27.66 Billion 52- Week Range: 56.49-45.55 Beta: 1.01

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

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

1. Acquiring New Customers

2. Deepening Engagement

3. Player Investment In Game

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

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.

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.

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

Margins Activision EA

Stability / Debt

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

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)

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