Activision Blizzard reports higher-than-expected sales as Microsoft close awaited

The videogame publisher's shares rose in the extended session after it reported better-than- expected revenue.

The shares declined less than 1% on Tuesday after hitting a low. Microsoft Corp.'s offer to acquire the publisher that has yet to close will prevent the company from issuing an earnings presentation or holding a conference call. Since the offer was announced, the highest share price has been $82.31, the closing price after the offer was announced. June 30, 2021, was the last time shares were close to $100.

The company reported second-quarter net income of $280 million, or 36 cents a share, compared with $886 million, or $1.12 a share, a year ago.

For the third quarter in a row, revenue declined from a year ago. Net bookings decreased from last year. Part of the revenue from purchases of digital products and services is often recognized in future quarters.

Earnings were expected to be 48 cents a share on revenue of 1.57 billion.

Bobby Kotick said in a statement that the development team grew 25% year over year as of the end of the second quarter.

The company said in a statement that GAAP revenue and earnings per share would be lower in the second half of the year.

Regulators in the U.K. opened an antitrust investigation into the deal. The acquisition closes at the end of Microsoft's fiscal year. Microsoft told regulators in New Zealand back in June that there were no "Must have" games.

There is nothing unique about the videogames developed and published by the company that is a must have for rival PC and console distributors that could lead to a foreclosure concern, according to the filing.

Microsoft told MarketWatch that it must have used legalese in the filing to say that it values all of the games from the company.

Microsoft told MarketWatch that "Must have" is not a statement about the value of the gaming portfolio. We have admiration and respect for the creative talent behind their games.

"Call of Duty", "World of Warcraft", "Overwatch", and "Diablo" are some of the games that are published by the company.

Microsoft shares are off 2.5% over the past year. The IGV is down 27%, the S&P 500 is down 6%, and the tech heavy COMP is down 15%.