Activision Acquires Digital Legends; Street Says Buy

Video game developer Activision Publishing, Inc. (ATVI) has acquired mobile game developer Digital Legends. The financial terms of the deal have not been disclosed so far.

Following the news, shares of the company rose marginally to close at $79 during Thursday’s extended trading session.

With Digital Legends, Activision has added yet another wholly-owned, independent studio team that will support the development of an unannounced new mobile title within the Call of Duty universe.

The President of Activision, Rob Kostich, said, “This is an incredible team of development pros at Digital Legends, and we couldn’t be more excited to welcome them to the Activision team. This is a great step forward as we continue to build additional world-class development resources focused on creating exciting and innovative content for our players.” (See Activision stock chart on TipRanks)

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On October 27, Wedbush analyst Michael Pachter reiterated a Buy rating on the stock with a price target of $125, which implies upside potential of 58.47% from current levels.

Consensus among analysts is a Strong Buy based on 16 Buys and 2 Hold. The average Activision price target of $112.69 implies upside potential of 42.86% from current levels. Shares have gained 1.4% over the past year.

TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Activision’s performance this quarter.

According to the tool, Activision website traffic registered a 4.46% monthly decline in global visits in September. However, year-to-date, website traffic rose 0.77%.

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