Activision Blizzard Inc. reported earnings and revenue that missed analysts’ estimates just weeks after Microsoft Corp. announced its $69 billion acquisition of the video game publisher.
Adjusted revenue fell 18% to $2.49 billion in the fourth quarter, Activision Blizzard said in a statement Thursday. Analysts had expected $2.84 billion, according to an average of estimates compiled by Bloomberg. Adjusted earnings per share were $1.25, compared with analysts’ forecasts for $1.31. The company cited "lower than expected performance” in its Activision division, which produces Call of Duty.
Microsoft swooped in at a crucial time for Activision Blizzard, which is behind hit games such as Candy Crush and World of Warcraft. The company, based in Santa Monica, California, has been rocked by allegations of rampant sexism and harassment, highlighted in a lawsuit from California’s Department of Fair Employment and Housing last July. The controversy caused executive-level shake-ups and broad discontent among employees.