Activision Blizzard “best positioned” company when it comes to eSports
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Activision Blizzard “best positioned” company when it comes to eSports

According to Bank of America Merrill Lynch analyst Justin Post, market-leading games developer and publisher Activision Blizzard is the one to watch when it comes to eSports. In a recent note, he described the company as the “best positioned” to cash in one the billion dollar eSports opportunity, and estimated that the company’s existing eSports properties – based around titles Call of Duty and Overwatch – will generate revenue of more than $100 million this year.

Activision Blizzard’s share price has risen by 8% in the last month

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SOURCE: Yahoo Finance

Post is not alone in his bullish sentiments over Activision Blizzard. Morgan Stanley analyst Brian Nowak has previously predicted that the company’s Call of Duty eSports events could make up $105 million of 2020 revenue on their own.

According to Post, eSports will generate direct revenue of $900 million this year, and cross the billion-dollar bridge in 2019. But this, he explains, is just the beginning. In Monday’s note, he wrote: "Over time, and using a traditional sports analogy, we believe eSports advertising (streaming, sponsorship), ticket sales, promotions, and merchandise sales could reach $15 billion."

Since eSports has been on the radar, Activision Blizzard has been amongst the world’s foremost drivers of eSports. For years, the pastime has existed out of reach of the general public and major gaming companies. All that changed a few years ago, and Activision was not slow to see the potential. That impressive intuition may well prove to be a major slam-dunk in the coming competitions to control the space.

Disclosure

Dominion holds Activision Blizzard in its Global Trends Ecommerce Fund.


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