We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
SONY to Boost PlayStation Family With $3.6B Bungie Buyout
Read MoreHide Full Article
Sony Group Corporation’s (SONY - Free Report) subsidiary, Sony Interactive Entertainment (“SIE”), announced its intent to acquire video game developer — Bungie — in a deal worth $3.6 billion. It is worth mentioning here that the announcement comes weeks after tech giant Microsoft’s purchase of Activision Blizzard Inc. for $69 billion.
In fact, Take-Two Interactive declared on Jan 10 that it will buy FarmVille creator Zynga for $12.7 billion with a mix of cash and stock. This makes Sony’s latest blockbuster acquisition the third much-talked-about buyout in the video game industry in January. Post the announcement of this major deal, shares of Sony rose 4.5% to close at $111.66 on Jan 31.
Based in Bellevue, WA, Bungie is a video game company that is best recognized as the developer of the “Destiny” and “Halo” gaming franchises. This independent game development studio is committed to empowering passionate player communities with industry's popular gaming franchises. Currently, it is focused on developing and expanding the Destiny franchise with the highly-anticipated release of Destiny 2.
With the acquisition of Bungie, SIE will gain first-hand access to the video game developer’s broad library of live game services and technology expertise of nearly three decades, thereby augmenting SIE’s reach to avid gamers across the globe. After the agreement comes to a closure, Bungie will act as SIE’s self-regulating subsidiary, comprising the studio's management team and Pete Parsons — current CEO of Bungie.
The landmark consolidation deal will see Bungie join Sony’s PlayStation family. Markedly, Sony is involved in the frequent buyouts of video game studios, but the acquisition of legendary developer, Bungie, is touted as, by far, the most significant win. Thanks to Bungie’s state-of-the-art knowledge in multi-platform development and live game services, Sony is now well-positioned to compete with Activision’s massive first-person shooter video game series — Call of Duty.
As Bungie seeks to create generation-spanning entertainment, the collaboration with SIE helped it not only stay creatively independent but also augment the footprint of PlayStation to a wide base of gamers. The deal will complement the long-term vision of both entities by fortifying the Japan-based conglomerate’s network of in-house gaming studios to tackle cash-rich rivals and empower Bungie to become a global multimedia entertainment company.
The COVID-19 crisis has triggered an acceleration in gaming activity worldwide. With tech firms scouting new ways to increase their revenue-generating streams, the video game industry is sparing no effort to tap lucrative opportunities resulting from the surge in demand created by the pandemic. Against this backdrop, Sony’s latest blockbuster buyout will enable it to reach new heights on the back of an incredible leadership team. The transaction is subject to customary working capital and other adjustments.
Sony’s Game & Network Services (G&NS) segment is one of the leading growth drivers of the company’s top line. In the last reported quarter, G&NS sales jumped 27.4% year over year to ¥645.4 billion, driven by a rise in hardware sales, a positive impact of foreign exchange rates and an increase in sales of non-first-party titles. The segment’s operating income was ¥82.7 billion compared with ¥105.4 billion in the prior-year quarter.
The company is also focusing on expanding its gaming business through an inorganic growth strategy. Last year, the company acquired game developer, Bluepoint Games, a game development studio, Housemarque, a PC-port specialist, Nixxes and the U.K.-based developer, Firesprite, to bolster its market share in the lucrative gaming software business. Sony is scheduled to report third-quarter fiscal 2021 results on Feb 2, before the opening bell.
GoPro, Inc. (GPRO - Free Report) is another top-ranked stock in the industry, carrying a Zacks Rank #2. The Zacks Consensus Estimate for its next-year earnings has been revised 1.2% upward over the past 60 days.
GoPro delivered a trailing four-quarter earnings surprise of 90%, on average. GPRO shares have returned 2.4% in the past three months.
PlayAGS, Inc. (AGS - Free Report) also has a Zacks Rank #2. The Zacks Consensus Estimate for current-year has been narrowed from a loss of 51 cents per share to a loss of 50 cents over the past 60 days.
PlayAGS delivered a trailing four-quarter earnings surprise of 33.3%, on average. AGS shares have gained 42.1% in the past year.
Fox Corporation (FOXA - Free Report) carries a Zacks Rank #2, at present. The consensus estimate for current-year earnings has been revised 1.1% upward over the past 60 days.
Fox Corporation delivered a trailing four-quarter earnings surprise of 81.1%, on average. The stock has returned 33.1% in the past year. FOXA has a long-term earnings growth expectation of 8.8%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
SONY to Boost PlayStation Family With $3.6B Bungie Buyout
Sony Group Corporation’s (SONY - Free Report) subsidiary, Sony Interactive Entertainment (“SIE”), announced its intent to acquire video game developer — Bungie — in a deal worth $3.6 billion. It is worth mentioning here that the announcement comes weeks after tech giant Microsoft’s purchase of Activision Blizzard Inc. for $69 billion.
In fact, Take-Two Interactive declared on Jan 10 that it will buy FarmVille creator Zynga for $12.7 billion with a mix of cash and stock. This makes Sony’s latest blockbuster acquisition the third much-talked-about buyout in the video game industry in January. Post the announcement of this major deal, shares of Sony rose 4.5% to close at $111.66 on Jan 31.
Based in Bellevue, WA, Bungie is a video game company that is best recognized as the developer of the “Destiny” and “Halo” gaming franchises. This independent game development studio is committed to empowering passionate player communities with industry's popular gaming franchises. Currently, it is focused on developing and expanding the Destiny franchise with the highly-anticipated release of Destiny 2.
With the acquisition of Bungie, SIE will gain first-hand access to the video game developer’s broad library of live game services and technology expertise of nearly three decades, thereby augmenting SIE’s reach to avid gamers across the globe. After the agreement comes to a closure, Bungie will act as SIE’s self-regulating subsidiary, comprising the studio's management team and Pete Parsons — current CEO of Bungie.
The landmark consolidation deal will see Bungie join Sony’s PlayStation family. Markedly, Sony is involved in the frequent buyouts of video game studios, but the acquisition of legendary developer, Bungie, is touted as, by far, the most significant win. Thanks to Bungie’s state-of-the-art knowledge in multi-platform development and live game services, Sony is now well-positioned to compete with Activision’s massive first-person shooter video game series — Call of Duty.
As Bungie seeks to create generation-spanning entertainment, the collaboration with SIE helped it not only stay creatively independent but also augment the footprint of PlayStation to a wide base of gamers. The deal will complement the long-term vision of both entities by fortifying the Japan-based conglomerate’s network of in-house gaming studios to tackle cash-rich rivals and empower Bungie to become a global multimedia entertainment company.
The COVID-19 crisis has triggered an acceleration in gaming activity worldwide. With tech firms scouting new ways to increase their revenue-generating streams, the video game industry is sparing no effort to tap lucrative opportunities resulting from the surge in demand created by the pandemic. Against this backdrop, Sony’s latest blockbuster buyout will enable it to reach new heights on the back of an incredible leadership team. The transaction is subject to customary working capital and other adjustments.
Sony’s Game & Network Services (G&NS) segment is one of the leading growth drivers of the company’s top line. In the last reported quarter, G&NS sales jumped 27.4% year over year to ¥645.4 billion, driven by a rise in hardware sales, a positive impact of foreign exchange rates and an increase in sales of non-first-party titles. The segment’s operating income was ¥82.7 billion compared with ¥105.4 billion in the prior-year quarter.
The company is also focusing on expanding its gaming business through an inorganic growth strategy. Last year, the company acquired game developer, Bluepoint Games, a game development studio, Housemarque, a PC-port specialist, Nixxes and the U.K.-based developer, Firesprite, to bolster its market share in the lucrative gaming software business. Sony is scheduled to report third-quarter fiscal 2021 results on Feb 2, before the opening bell.
Sony currently carries a Zacks Rank #2 (Buy). Its shares have gained 12.5% compared with the industry’s growth of 8.9% in the past year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GoPro, Inc. (GPRO - Free Report) is another top-ranked stock in the industry, carrying a Zacks Rank #2. The Zacks Consensus Estimate for its next-year earnings has been revised 1.2% upward over the past 60 days.
GoPro delivered a trailing four-quarter earnings surprise of 90%, on average. GPRO shares have returned 2.4% in the past three months.
PlayAGS, Inc. (AGS - Free Report) also has a Zacks Rank #2. The Zacks Consensus Estimate for current-year has been narrowed from a loss of 51 cents per share to a loss of 50 cents over the past 60 days.
PlayAGS delivered a trailing four-quarter earnings surprise of 33.3%, on average. AGS shares have gained 42.1% in the past year.
Fox Corporation (FOXA - Free Report) carries a Zacks Rank #2, at present. The consensus estimate for current-year earnings has been revised 1.1% upward over the past 60 days.
Fox Corporation delivered a trailing four-quarter earnings surprise of 81.1%, on average. The stock has returned 33.1% in the past year. FOXA has a long-term earnings growth expectation of 8.8%.