Who Owns the Most Shares in Activision?
Ultimately, the question of who owns the most shares of Activision in its present form is moot. Microsoft has officially acquired Activision Blizzard in a landmark deal that closed on October 13, 2023. Prior to the acquisition, understanding the shareholder landscape was crucial to understanding the company’s direction and governance. Therefore, it’s useful to look at who the major shareholders were before Microsoft took over.
Before the acquisition, no single entity owned a controlling stake (more than 50%) in Activision Blizzard. Instead, ownership was distributed amongst a variety of institutional investors, funds, and individual shareholders. Institutional investors are entities that pool money to purchase securities, real property, and other investment assets or originate loans.
While individual holdings fluctuated, some key players consistently held significant portions of Activision Blizzard’s stock:
- Fmr Llc (Fidelity Management & Research)
- Vanguard Group Inc.
- BlackRock Institutional Trust Company, N.A.
These companies typically held the largest numbers of shares, exerting considerable influence on corporate decisions. However, their holdings usually represented minority stakes, meaning that decisions were influenced by a combination of shareholder votes and management direction. According to available data, BlackRock Inc. most recently disclosed ownership of 56,307,360 shares of Activision Blizzard Inc (US:ATVI). This represented 7.2 percent ownership of the company.
With Microsoft’s acquisition, all outstanding shares of Activision Blizzard were purchased for $95 per share, effectively dissolving the previous shareholder structure. Now, Activision Blizzard operates as a subsidiary of Microsoft, and its financial performance is consolidated within Microsoft’s overall results.
Understanding Activision Blizzard’s Shareholder Landscape (Pre-Acquisition)
Even though Microsoft now owns Activision, it is important to understand the old shareholder landscape. Prior to the Microsoft takeover, Activision Blizzard operated as a publicly traded company, meaning its shares were available for purchase by anyone on the open market. This distributed ownership structure, while common for large corporations, presented its own set of dynamics. Understanding these dynamics is crucial to grasp how Activision Blizzard was managed and its trajectory prior to the acquisition.
The Role of Institutional Investors
Institutional investors like Vanguard and BlackRock play a crucial role in publicly traded companies. They manage vast sums of money on behalf of their clients, which include pension funds, mutual funds, and other large organizations. Because they hold so many shares, they have the power to influence corporate governance, strategy, and even executive compensation. Their decisions to buy, sell, or hold shares can significantly impact a company’s stock price.
Individual Shareholders and Their Impact
While institutional investors held the most shares, individual shareholders also played a role, even if it was a smaller one. The collective voting power of individual shareholders can be significant, especially on matters of shareholder proposals and board elections.
Shareholder Activism and Corporate Governance
The concentration of ownership in the hands of institutional investors can lead to shareholder activism. Activist investors use their shareholdings to pressure companies to make changes to their business practices or strategy. This can involve publicly criticizing management, proposing shareholder resolutions, or even launching proxy contests to elect new directors.
Frequently Asked Questions (FAQs) about Activision Blizzard Shareholders (Pre-Acquisition)
Here are some frequently asked questions about Activision Blizzard shareholders, offering deeper insights into this topic.
1. How many shareholders did Activision Blizzard have?
According to Activision’s latest annual report filed with the US Securities and Exchange Commission (SEC), 1,482 stockholders of record held the company’s common stock by the end of January 2022. This figure only represents stockholders of record and does not include beneficial owners whose shares are held in street name (e.g., through a brokerage account). The true number of individual investors was likely much higher.
2. What did Activision shareholders get in the Microsoft acquisition?
All holders of ATVI received $95.00 in exchange for each ATVI share held at the close of trading on October 12, 2023. This was an all-cash deal.
3. How many total shares of Activision were outstanding?
As of October 2023, Activision had approximately 786,000,000 shares outstanding.
4. How much of Activision did Warren Buffett own?
Berkshire Hathaway, led by Warren Buffett, held a significant stake in Activision Blizzard prior to the acquisition. The investor owned 1.88% of the outstanding Activision Blizzard stock. Warren Buffett started to build up the position in Activision Blizzard in Q4 2021 and continued to invest until Q2 2022. Since then they sold 53.7 Million shares.
5. Why was Activision’s stock price not at $95 before the acquisition closed?
Activision’s stock closed at $91.66, below Microsoft’s offer price of $95. This was due to uncertainties that plagued the deal, Activision Blizzard shares never formed the narrow trading range that you typically see in a company whose acquisition is all but certain.
6. What influence did shareholders have on Activision’s strategy?
Shareholders, especially large institutional investors, had significant influence on Activision’s strategy. Their voting power on matters such as board elections, executive compensation, and major corporate transactions gave them leverage to shape the company’s direction.
7. What were some key shareholder concerns regarding Activision before the acquisition?
Key shareholder concerns before the acquisition included workplace culture issues, controversies surrounding CEO compensation, and regulatory scrutiny of the Microsoft deal.
8. How did Activision’s financial performance affect its shareholders?
Activision’s financial performance directly affected its shareholders. Strong performance, driven by successful game releases and growing digital revenue, generally led to higher stock prices and greater shareholder returns. Conversely, weak performance could lead to lower stock prices and shareholder dissatisfaction.
9. What happens to Activision Blizzard now that Microsoft owns it?
Now that Microsoft owns Activision Blizzard, it operates as a subsidiary of Microsoft. Its financial performance is consolidated within Microsoft’s overall results. Microsoft will likely integrate Activision’s game franchises and studios into its Xbox ecosystem.
10. What is Activision’s biggest franchise?
The Call of Duty franchise is Activision’s biggest and most profitable entertainment franchise. The long-running FPS series is still played by millions.
11. What were Activision’s biggest money makers?
The Activision segment, which develops and sells video games, is the company’s biggest revenue and profit generator. Candy Crush and Call of Duty Modern Warfare 2 lead the way.
12. Why did Microsoft want to buy Activision?
Acquiring Activision Blizzard gives Microsoft access to multi-million dollar IPs such as Call of Duty, Overwatch, Diablo, and WarCraft franchises, as well as studios such as Treyarch and Infinity Ward. This will help bolster Microsoft’s Xbox Game Pass subscription service.
13. Should I have bought shares in Activision before the acquisition?
The information provided in the text suggests that buying shares in Activision before the acquisition could have been a worthwhile investment, as holders of ATVI received $95.00 in exchange for each ATVI share held at the close of trading on October 12, 2023.
14. How much was Microsoft paying per Activision share?
Microsoft was paying $95 per share in an all-cash deal.
15. What are some resources for learning more about the gaming industry and its impact on education?
Organizations such as the Games Learning Society (GamesLearningSociety.org) are great places to learn more about the intersection of games and education. The Games Learning Society explores the design and impact of digital games on learning.