Video game publisher Activision Blizzard (ATVI) saw its stock tumble Friday after announcing a split with high-profile game development studio Bungie following an eight-year partnership.
The two companies announced the dissolution of their partnership late Thursday.
Best known for creating the "Halo" game series for Microsoft (MSFT), Bungie made the "Destiny" series of science-fiction shooter games for Activision. Bungie is assuming full publishing rights for the "Destiny" franchise going forward. As a result, Activision does not expect to realize material revenue or earnings from the "Destiny" franchise in 2019.
The breakup could be beneficial to Activision's long-term profitability, Baird analyst Colin Sebastian said in a report to clients. However, it will trim 2% to 3% from Activision's expected revenue in the near term.
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