Activision Blizzard seems to be going through a slightly rough patch at the moment. Blizzard executive Frank Pearce recently announced he was leaving the company, making him the second co-founder to leave over the past year, and the company's share price has been declining over the last few months, leading to some speculation it could be bought out. Now, one investor has suggested that the Walt Disney Company should do just that.
Nick Licouris, who works for the investment firm Gerber Kawasaki, has said that he sees potential benefits between Activision's esport business and Disney's TV networks, as well as an opportunity for Disney to leverage its many characters. Disney does already televise Activision's Overwatch League so a connection is there. Gerber Kawasaki itself owns roughly 90,000 shares of Activision, according to Bloomberg.
While Disney has become quite the juggernaut over the last several years and is constantly embracing new developments like streaming, which has led to it creating its own streaming service that will offer classic and new films and TV shows based on its many franchises, the world of video games is one that it hasn't had as much success with. In the past, it had bought studios like Playdom and created IPs of its own like Club Penguin and Disney Infinity, but these decisions led to the company running up hundreds of millions of dollars in losses. In the end, Disney decided to move away from video game publishing all together.
"We’ve just decided that the best place for us to be in that space is licensing and not publishing," said Disney's current Chief Executive Officer Bob Iger. Nowadays, the company has managed to enjoy game-related successes by allowing other publishers to use its IPs to create original titles, like EA's many Star Wars games and Square Enix's immensely popular JRPG franchise Kingdom Hearts, though these publishers still need to follow certain guidelines issued by the company. It's why EA's next Star Wars game won't feature any graphic violence.
With the global gaming market projected to generate $152.1 billion in revenue this year, Licouris believes that the upsides are too good to overlook. At the time of writing, however, neither Activision or Disney have commented on this.