There was plenty of big news for video game companies recently, as last week Activision Blizzard (NASDAQ: ATVI) hit five-year highs after it announced it would be buying back $8.17 billion worth of shares from parent company Vivendi. Why would a company that's been as successful as Activision want to suddenly separate itself from its profitable parent? In the following video, Mark Reeth explains just who exactly wanted a larger piece of the pie and how it will affect fellow gaming company and minority Activision shareholder Tencent.
Meanwhile, as Activision heads higher, Zynga (NASDAQ:ZNGA) plummets lower after the company announced that it won't pursue legalized online gambling in the United States. After a disappointing earnings report last week, can the struggling company really afford not to go all in on gambling? Watch the video and find out!
Fool contributor Mark Reeth has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Activision Blizzard. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.