Shares of Activision Blizzard (NASDAQ: ATVI) hit a five-year high on news it's buying nearly $6 billion worth of shares from majority owner Vivendi.
Activision Blizzard is the second-largest video gaming company by revenue in the world. It has produced best-selling franchises such as Call of Duty and World of Warcraft. But shares have languished over the past few years in part because of Vivendi's ownership stake. A French conglomerate, Vivendi owns 61% of Activision Blizzard, and investors have shied away from the stock as a result.
With this latest news, Motley Fool analyst Ron Gross believes Activision Blizzard's best days are ahead. Now that the company has majority control, it can make strategic acquisitions, issue debt, and make financial decisions with greater speed. Even with today's pop, Ron's optimistic about Activision's future.
