My first stock purchase on this journey was going to be Activision, ATVI. I even made sure I was up early today to check out the stock and look for an In today. I liked the stock because I have found it impossible to find Guitar Hero 3 for the Wii. There were also rumors that Vivendi might buy it up. That meant that I wanted to get in and out of the stock in the next 3 weeks, right before Christmas. I thought the two above factors would mean good price action in the short term, with a good long term story of a growing gaming industry and a hot game franchise. The stock has rebounded since hitting a dip in November, so it wasn't too expensive and look ready to go up for a run.
Well, right before the bell Vivendi announced they were purchasing Activision. Stock Jumped 20% on the news. Since Vivendi has put a price on the stock now, it's pointless to try and get in. Would have been nice to get a quick 20% return on my money. Oh well, on to the next stock.
I did not hear this until I read your blog. This is interesting. According to Wikipedia, "Vivendi announced that their subdivision Vivendi Games would be merging [with] Activision to form Activision Blizzard" (they bought Blizzard a few years back). That is pretty big news. EA seems to be the only other video game company that is as large as this new merged company.ReplyDelete
Yeah, EA is the only company bigger than Vivendi's game division. There is some rumors of more consolidation, so companies like Take Two being bought out, but I don't have as good of a feeling about these as I did about Activision.ReplyDelete
I had that gnawing feeling to buy the stock after the second Guitar Hero too. Missed that gravy train though!ReplyDelete
[...] it last weekend, and was ready to pounce on it Monday or Tuesday. Then of course they announced the Vivendi deal, and that killed any trade I could [...]ReplyDelete