Activision (ATVI) Shares Dive After Split With Destiny Creator Bungie
Shockwaves went through the gaming community on Thursday after Bungie, creator of the popular Halo franchise, revealed that it has split with Activision Blizzard (ATVI) and will assume full ownership of Destiny.
Today, we’re announcing plans for Bungie to assume full publishing rights for the Destiny franchise.
— Bungie (@Bungie) January 10, 2019
According to a blog post published by Bungie, which was later confirmed by Activision, the companies have decided to end co-development activities on the popular title — eight years after first launching the partnership in 2010.
“We have enjoyed a successful eight-year run and would like to thank Activision for their partnership on Destiny. Looking ahead, we’re excited to announce plans for Activision to transfer publishing rights for Destiny to Bungie,” the company said in the announcement. “With our remarkable Destiny community, we are ready to publish on our own, while Activision will increase their focus on owned IP projects. The planned transition process is already underway in its early stages, with Bungie and Activision both committed to making sure the handoff is as seamless as possible.”
As a result of the breakup, shares of Activision dropped more than 6.5% in after-hours trading, bringing the stock to $48.00 with a $36.6 billion market cap.
Bungie’s departure is another piece of bearish news for the gaming giant, which recently lost CFO Spencer Neumann after the executive was poached by Netflix (NFLX). Shares of ATVI are down almost 43% since October as the sell-off continues into the new year.