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Activision Blizzard Inc ATVI

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U.S. Ban on WeChat and Tencent Could Have Major Implications for Video Game Industry

Neil Macker, CFA Senior Equity Analyst

Analyst Note

| Neil Macker, CFA |

U.S. President Donald Trump escalated the trade war with China via executive orders that ban U.S. transactions with the TikTok and WeChat apps and their respective owners, ByteDance and Tencent, effective 45 days from Aug. 7. While the president had been attacking TikTok, the addition of WeChat and Tencent to the ban was a surprise. The language in the orders is broad, and the specific banned transactions will be defined by the secretary of commerce before the 45-day deadline.

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Company Profile

Business Description

Activision Blizzard was formed in 2008 by the merger of Activision, one of the largest console video game publishers, and Blizzard, one of largest PC video game publishers. The combined firm remains one of the world's largest video game publishers. Activision's impressive franchise portfolio includes World of Warcraft, which boasts more than $8 billion of lifetime sales, and Call of Duty, which has sold over 175 million copies across 14 titles over 12 years.

Contact
3100 Ocean Park Boulevard
Santa Monica, CA, 90405
T +1 310 255-2000
Sector Communication Services
Industry Electronic Gaming & Multimedia
Most Recent Earnings Jun 30, 2020
Fiscal Year End Dec 31, 2020
Stock Type Slow Growth
Employees 9,200

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