Activision Blizzard’s (NASDAQ:ATVI) Blizzard Entertainment is suspending most of its game services and stalling any new sales in China. The company failed to finalize licensing agreement renewal terms with its 14-year publishing partner NetEase (NTES).
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Blizzard said that the deal was not consistent with its “operating principles and commitments to players and employees.” The ongoing agreement stands to expire in January 2023.
Considering that the current agreement contributed just 3% of Activision’s net revenues in 2021, the move should not be of much concern to investors.
Is Activision a Buy Stock?
On TipRanks, ATVI stock has a Moderate Buy consensus rating based on six Buys and four Holds recommendations. The average stock price target of $92.70 implies 25.59% upside potential.
Impressively, the company has consistently grown its quarterly dividend payout every year since 2011, with the last hike being 14.6% in April 2021. Currently, ATVI’s TTM dividend yield is 0.64%, which is slightly below its peer group. Nevertheless, the gaming giant stays optimistic about the proposed acquisition by tech behemoth Microsoft (MSFT).