Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Activision....Returns! -- Ignore unavailable to you. Want to Upgrade?

To: Tom Caruthers who wrote (693)	12/1/1997 5:50:00 PM
From: Tom Caruthers	Read Replies (1) \| Respond to of 1992

This deal is very significant. biz.yahoo.com It makes a takeover less likely by companies already established in the industry but makes the company a much stronger takeover prospect for entertainment giants wanting to break into this market. Without trying to sound like a broken record...Time-Warner, Viacom, etc. The numbers look pretty good...For roughly 3 million shares, ATVI has gotten roughly $4.4 million in net income (I will assume this is in U.S. dollars....always bad to assume, but...) and a broadened distribution network into the UK and Germany. Considering Europe represents about 25% of total company revenues, this push for stronger distribution can have a big impact on the bottom line. Not only does the company get revenue/income unassociated with ATVI products from these two companies, but ATVI also gets to push its products harder and with higher margins as mentioned in the release. I also like that these businesses will remain independent and will not be folded directly into ATVI which can be distracting for management. If we tack on $4.4 million to net income for ATVI, and 19.2 million shares outstanding after dilution, that adds about $0.23 to the bottom line. If we assume that the distribution businesses deserve a P/E of roughly 15 (assume long-term growth rate of roughly 15%), then the $0.23 cents a share should add another $3-4 onto the stock. At least it's not a dilution. Overall, ATVI looks like it is becoming a stronger, more balanced entertainment company and that can only bode well in the future, takeover or not. Now for ATVI to broaden and solidify its console offerings and make sure it releases games of high quality and not full of bugs. Tom C.

To: Tom Caruthers who wrote (693)	12/1/1997 5:53:00 PM
From: Burlitis	Read Replies (1) \| Respond to of 1992

Tom, ATVI did 2 more aquisitions today, they were both european distribution companys. John Carmak also announced Quake 2 went gold today.Heavy Gear is getting mixed reviews over in Usenet, they are starting to turn into flame wars. ATVI is getting slammed for all the hype a usual<G>,some people are pissed about the Beta multiplayer option,others say the game is better than Mercernaries.HG will sell well, everybody wants to run around in giant robots and kill eachother. It looks like the people who bought HG from Walmart have become targets in Multiplayer games. Apparently with the Walmrart version you get a "special" Mech. Still stuck in ZGI, love this game, the music and sounds are very good, i hope they use QSound more. Alex