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Activision investors call for third-party investigation into Bungie split

Although Activision’s split with Bungie was largely welcomed by the Destiny community, company inves

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Fist4achin32d ago

Im sure Activision took a blow with their recent news of their partnership with Bungi coming to an end, but the investors arent realizing the general roller coaster of a market we are currently experiencing.

Godmars29032d ago

They aren't aware of anything but making money, and not making money. Activiision told them that gaming represented unlimited earning potential, so things like this only shake that empty promise.

PoSTedUP32d ago

yeah the Investors arent realizing the current state of the market...

market does great--> fed raises rates--> 10 minutes later market drops 700 points. its their roller coaster. think its about time we audit the federal reserve. theyve raised rates more times in the last year, with a lower inflation percentage, than they have in almost a decade with a higher and ever-growing inflation percentage. it can only mean one thing: that the earth is flat. O_o

PapaBop32d ago

Well they only had their earnings call just over two months ago. I can't imagine Bungie's desire to leave happened over night. I imagine the investors feel cheated because they'd expect to be notified of such an important development in advance and not find out when their stock drops 9% over night. Not going to do the math but that's a LOT of money for those with big investments in the company, I'd be pissed too if I lost millions without so much as a warning.

ImGumbyDammit32d ago (Edited 32d ago )

These investors had access to the same numbers as everyone else and they got notified the same time as everyone else. Any early notification and special treatment that everyone else does not have is tantamount to insider trading. Which is a no,no.

Now the question is there anybody within the company that acted on their own stock before this change happened. Well, at least acted in a way that was out of their normal buy/sell pattern.

Sirk7x32d ago

If they actually knew about what they were investing in, they would have pulled out. I had money in gaming ETFs, and moved my investments months ago, because I saw AAA companies were about to tank.

rainslacker31d ago

@Gumby

Activision would have released potential earnings reports, which would have to include any potential or known split from Bungie. However, if there was nothing at the time to say Bungie was for sure going to split, they wouldn't be obligated to change those numbers.

However, if the departure was known sometime after, it is considered responsible to update projected revenue and profit potential, but I don't know if it's actually required. But an almost 10% differential is pretty significant.

You are right about the insider trading part though. Any changes to the potential revenues would have to be a statement not pertaining to the reasons why, and can be left vague if there is potential legal things in the works.

Rude-ro32d ago

They are investigating any insider trading due to the split. Who knew, who had invested interest, and who sold according to the knowledge. Could be the suits of activision. Could be the higher up with bungie. That is the gist of the investigation.

rainslacker31d ago

I would think that Activision would have to agree with the split if they fronted so much money for the game. Bungie likely wouldn't have been just able to leave without it being a mutual departure, or Bungie paying to get out of the contract. Things like this aren't just some random understanding, but well detailed contracts detailing what is acceptable for both parties to do, or not do.

If Bungie and Activision met their contractual obligations, i don't really see why any investigation is warranted. Unless some of the investors know more than we do. Bungie itself hasn't gone into great detail, so maybe this wasn't an amicable departure like when Bungie left MS.

+ Show (2) more repliesLast reply 31d ago
BenRoxio32d ago

yeah, poor investors want their cash cow back.

XiNatsuDragnel32d ago

Burn Activision burn rn since you guys brought this upon yourselves

Lighter932d ago

All they have now is COD.

Donnie8132d ago

I’m sure behind the scenes this was messy

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