|Analyst: Vivendi sale in Activision/Blizzard stock may force Titan reveal|
|Posted: 28.06.2012 07:15 by||Comments: 2|
Seeking Alpha analyst Jeff Borack has opined in his that if Vivendi sells a sizeable chunk of its Activision-Blizzard shares - of which it owns 61% of the company stock - that may force Blizzard to unveil its Project Titan MMO project.
According to Borack, "Titan is a key driver of long-term shareholder value. Blizzard has been expensing tens of millions of dollars into R&D every year to develop a game that has yet to generate a dollar of revenue. But once released, revenue from Titan will likely ramp faster than for WoW and should quickly eclipse it. Few companies have such an attractive opportunity for incremental reinvestment. At the very least, an official announcement will give investors an idea of how much development work has been done and it will allow us to model some Titan revenue to offset WoW losses."
Borack went on to say that if Vivendi wanted to generate cash, they would or should issue a press release detailing just what Project Titan is, and only after then optionally sell shares of stock as the value of Activision-Blizzard soared from investor interest.
Three weeks ago, started circulating that Vivendi would sell its controlling stock of Activision-Blizzard due to financial problems.