Activision Blizzard Loses $3 billion in Value in One Day
Did the bailout really bail anyone out?
The wackiness on Wall Street continues amid an umpty-gagillion dollar tax-payer provided bail out of a bunch of people who fell asleep at the switch. And while all of this is going on, the video game stocks of our favorite companies (most of the companies are publicly traded) are hitting the toilet. If you thought you had a bad day, EA lost $1.1 billion dollars worth of market value in a single day. That stings, but Activision Blizzard lost $3 billion that same day. Expect the price tag on the items at Blizzcon to go up to increase earnings. It's unfortunate that being a publicy traded company comes with a price tag of "guilt by association" but essentially that is what it means. These guys took it in the shorts because the market took a dump. According to the website Seeking Alpha, this might be a great time to buy more than just World of Warcraft or Warhammer Online, you may want to look at their company stocks at a discount (that would be Activision Blizzard and EA respectively).
This loss in market value also makes game companies ripe for the picking of bigger companies. Oh the horror! Can you imagine if the Oprah empire sauntered in and bought them all?
Check in on the rest of your gaming portfolio like Take Two, Ubisoft and others at Seeking Alpha.