Shares of video game company Activision Blizzard (NASDAQ:ATVI) fell on Friday following news that the company transferred full publishing rights and responsibilities for its popular Destiny game franchise to game developer Bungie, which helped create the game.
The stock fell as much as 13.4% on Friday. Shares are down about 10.1% as of 11:06 a.m. EST.
"Going forward, Bungie will own and develop the franchise," Activision said in a Jan. 10 SEC filing.
Destiny was material to Activision's business. Indeed, the company credited its sequential growth in its monthly active users to Destiny expansion Forsaken in its most recent quarter.
Nevertheless, management was disappointed with Destiny's most recent expansion.
"And while Forsaken is a high quality expansion with strong engagement and new modes of play, it did not achieve our commercial expectations and there is still work to do to fully reengage the core Destiny fan base," said Activision chief operating officer Coddy Johnson in the company's third-quarter earnings call.
Activision "does not expect to recognize material revenue, operating income or operating loss from the Destiny franchise in 2019," the company said in its SEC filing.
No other terms were disclosed about the deal.